Problem 5-31

Crane Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Vanessa Aaron, the companys sales manager, prepared the following sales forecast for 2018. The forecasted sales prices include a 5% increase in the acoustic guitar price and a 10% increase in the electric guitar price, to cover anticipated increases in raw materials prices.

This question is as clear as it can get.

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Acoustic guitar sales Electric guitar sales Sales Price $1,200 $2,350 190 380 250 330 290 300 300 340 Prepare Crane's sales budget for 2018 Sales Budget ist Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Electric Total revenue LINK TO TE INK TO VIDEO On December 31, 2017, Crane had 30 acoustic guitars in stock-fewer than the desired inventory level of 76 guitars, based on the following quarter's sales. The company has budgeted for sales of 240 acoustic guitars in the first quarter of 2019. Prepare the 2018 production budget for acoustic guitars. ist Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual LINK TO TEXT INK TO VIDEO Each acoustic guitar requires a maple neck blank, which Crane purchases for $40. On December 31, 2017, Crane had 380 neck blanks in inventory. Spoilage during the production process results in a standard quantity of 1.5 necks per acoustic guitar. Because of recent delivery problems, Crane wants to maintain an ending inventory equal to 50% of the following quarter's production needs. Since the supplier has assured Crane that the delivery issues will be resolved by the end of December, Crane wants only 300 neck blanks in inventory on December 31, 2018. Prepare the purchases budget for neck blanks for 2018. (Enter "per guitar" value to 1 decimal place, e.g. 3.1. Round all other answers to 0 decimal places, e.g. 153.) s Budge ist Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual