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Problem: Tucson Tortilla expects to sell a case of tortilla chips at a sales price of $20 per case. Tucson Tortilla's sales budget for the
Problem: Tucson Tortilla expects to sell a case of tortilla chips at a sales price of \$20 per case. Tucson Tortilla's sales budget for the first three months of the year is shown in the following table. - Tucson Tortilla expects 20% of its sales to be cash (COD) sales. The remaining 80% of sales will be made on credit. Tucson Tortilla's credit terms are "net 30 ," meaning the customer has up to 30 days to pay for its purchases. - Tucson Tortilla wants to maintain an ending inventory equal to 10% of the next month's expected sales. Since Tucson Tortilla desires ending inventory to be 10% of the next month's sales, managers expect to have 10% of January's sales on hand on December 31 , which becomes the beginning balance on January 1: Required: 1. Prepare a schedule of expected Total revenue from sales, by month and in total, for the 1st quarter. 2. Prepare a production budget for the 1 st quarter showing the number of units to be produced each month and for the quarter in total
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