P7. The Bottled Water Company has been bottling and selling water since 1940. Ginnie Adams, the current owner of The Bottled Water Company, would like to know how a new product would affect the company's net income in the coming year. Repaired Calculate The Bottled Water Company's net income for the new product in the coming year by completing the operating budgets and budgeted income state- ment that follow. Sales Budget: The Bottled Water Company Sales Budget For the Year Ended December 31 Quarter Sales in units 40,000 30,000 50,000 55,000 75,000 x X Selling price per unit Total sales $40,000 2. Production Budget: The Bottled Water Company Production Budget For the Year Ended December 31 Quarter Year Sales in units 40,000 Plus desired units of ending 6.000 -6000 finished goods inventory 3,000 Desired total units 43,000 Less desired units of beginning finished goods inventory 4,000 -4000 Total production units 39,000 "Desired units of ending finished goods inventory 10% of next quarter's budgeted sales. "Desired units of beginning inishedgoods inventory 0% of current quarter's budgeted sales