• Number of visitors to the island from January 2007 to May 2007 were 125,000, 125,000, 150,000, 125,000 and 125,000, respectively. (For simplicity, we assume each visitor, on average, purchases one milk shake.

• The sales mix and the sales price will be consistent with the first part of the case at 40% small and 60% large with the sales price set at the competitors price of $10 for large and $7 for small (less the resort fee of 10%).

• SALES BUDGET for 1st qtr	January	February	March	1stqtr Total	April	May
  Large shakes expected to be sold: (visitors*.60)
  Expected sales price ($10*90%)
  Total sales ($)
  Small shakes expected to be sold: (visitors * .40)
  Expected sales price ($7*90%)
  Total sales ($)
  TOTAL SALES

• 10% of next months expected milk shake sales is desired to be left in ending inventory as a safety cushion.

• PRODUCTION BUDGET - 1st QTR	January	February	March	1st Qtr total	April
  Large shakes (sales budget)
  + desired ending inventory
  Total needed
  Less: beginning inventory	0			0
  Large shakes to produce

Thank you!