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Part 2 of 4 Comfy Pillows makes decorative throw pillows for home use. The company sells the pillows to home dcor retailers for $14
Part 2 of 4 Comfy Pillows makes decorative throw pillows for home use. The company sells the pillows to home dcor retailers for $14 per pillow. Each pillow requires 1.50 yards of fabric, which the company obtains at a cost of $9 per yard. The company would like to maintain an ending stock of fabric equal to 20% of the next month's production requirements. The company would also like to maintain an ending stock of finishe pillows equal to 25% of the next month's sales Sales (in units) are projected to be as follows for the first three months of the year i (Click the icon to view the projected sales (in units) for the first three months of the year) Read the requirements Total sales revenue 1,540,000 S 1,960,000 2,100,000 5,600,000 Casales $ 154,000 $ Credit sales 1,386,000 $ 1,540,000 $ 196,000 $ 1,764,000 1,960,000 $ 210,000 $ 1,890,000 2,100,000 $ 560,000 5,040,000 5,600,000 Total sales Requirement 2. Prepare the production budget. Assume that the company anticipates selling 170,000 units in April. (Round your answers to the nearest whole number.) Comfy Pillows Production Budget For the Quarter Ended March 31 Unit sales Plus Desired ending inventory Tola needed Less Begnventory Units to produce January February March 1st Quarter 110,000 140,000 150,000 400,000
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