Problem 5-31 Sunland Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Vanessa Aaron, the company's 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. Sales Price 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 16 Acoustic guitar sales Electric guitar sales $1,250 $2,450 210 270 310 315 400 380 330 350 Sales Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Prepare Sunland's sales budget for 2018. 6 Acoustic: T SA SA +A +A $ $ $ $ $ Total revenue $ $ On December 31, 2017, Sunland had 30 acoustic guitars in stock-fewer than the desired inventory level of 84 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. Electric: G Production Budget 1st Quarter 2nd Quarter 3rd Quarter Quarter 4th Annual Each acoustic guitar requires a maple neck blank, which Sunland purchases for $40. On December 31, 2017, Sunland had 400 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, Sunland wants to maintain an ending inventory equal to 50% of the following quarter's production needs. Since the supplier has assured Sunland that the delivery issues will be resolved by the end of December, Sunland wants only 380 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.) > Purchases Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual A HA A