Question
PoleTem Inc. manufactures and sells picnic tables. For the coming year, PoleTem expects to sell 3,200 picnic tables at a price of $150 each.
PoleTem Inc. manufactures and sells picnic tables. For the coming year, PoleTem expects to sell 3,200 picnic tables at a price of $150 each. The beginning inventory is 125 picnic tables and management would like to increase the inventory to 200 tables by the end of the year. a. What is the budgeted revenue? b. How many tables should be budgeted for production? c. If the sales price decreases to $140, management expects the number of tables to be sold will increase by 10%. What is the impact on budgeted revenue and budgeted production?
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