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Porch, Inc., bottles and distributes mineral water from the company's natural springs in northern Oregon. Porch markets two products: 12-ounce disposable plastic bottles and 1-gallon
Porch, Inc., bottles and distributes mineral water from the company's natural springs in northern Oregon. Porch markets two products: 12-ounce disposable plastic bottles and 1-gallon reusable plastic containers. Read the requirements. Requirement 1. For 2018, Porch marketing managers project monthly sales of 450,000 12-ounce bottles and 180,000 1-gallon containers. Average selling prices are estimated at $0.90 per 12-ounce bottle and $1.80 per 1-gallon container. Prepare a revenues budget for Porch, Inc., for the year ending December 31, 2018. Revenues Budget For Year Ending December 31, 2018 Units Price 12-oz. bottles 5,400,000 $ 0.90 $ 1-gallon containers 2,160,000 $ 1.80 Budgeted revenues $ Total 4,860,000 3,888,000 8,748,000 Requirement 2. Porch begins 2018 with 990,000 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 670,000 bottles. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Porch must produce during 2018? Production Budget (in Units) For the Year Ending December 31,2018 12 oz. bottles
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