Preparing an operating budget- sales and production budgets

Gorman Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $35. Gorman projects sale from April will be 5,500 packages, with sales increasing by 450 packages per month for May, June, and July. On April 1, Gorman has 125 packages on hand but desires to maintain an ending inventory of 10% of the next month's sales. Prepare a sales budget and a production budget for Gorman for April, May, and June.

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