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Ponte Inc., bottles and distributes mineral water from the company's natural springs in northern Oregon. Ponte markets two products: 12-ounce disposable plastic bottles and 1-gallon
Ponte Inc., bottles and distributes mineral water from the company's natural springs in northern Oregon. Ponte markets two products: 12-ounce disposable plastic bottles and 1-gallon reusable plastic containers.
1. | For 2018,Ponte marketing managers project monthly sales of 420,000 12-ounce bottles and 150,000 1-gallon containers. Average selling prices are estimated at $0.60 per 12-ounce bottle and $1.40 per 1-gallon container. Prepare a revenues budget for Ponte Inc., for the year ending December 31, 2018. |
2. | Ponte begins 2018 with 930,000 12-ounce bottles in inventory. The vice president of operations requests that 12-ounce bottles ending inventory on December 31, 2018, be no less than 660,000 bottles. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Ponte must produce during 2018? |
3. | The VP of operations requests that ending inventory of 1-gallon containers on December 31, 2018, be 300,000 units. If the production budget calls for Ponte to produce 1,500,000 1-gallon containers during 2018, what is the beginning inventory of 1-gallon containers on January 1, 2018? |
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