Prime, Inc., bottles and distributes mineral water from the company's natural springs in northern Oregon. Prime markets two products: 12-ounce disposable plastic bottles and 1-gallon reusable plastic container

Requirements: 1. For 2021, Prime marketing managers project monthly sales of 490,000 12-ounce bottles and 170,000 1-gallon containers. Average selling prices are estimated at $0.50 per 12-ounce bottle and $1.90 per 1-gallon container. Prepare a revenues budget for Prime, Inc., for the year ending December 31, 2021.

2. Prime begins 2021 with 890,000 12-ounce bottles in inventory. The vice president of operations requests that 12-ounce bottles ending inventory on December 31, 2021, be no less than 690,000 bottles. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Prime must produce during 2021?

3. The VP of operations requests that ending inventory of 1-gallon containers on December 31, 2021, be 300,000 units. If the production budget calls for Prime to produce 1,500,000 1-gallon containers during 2021, what is the beginning inventory of 1-gallon containers on January 1, 2021?