Question 5-31 - Part B

Problem 5-31 (Part Level Submission) strum Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Claire Strum, the company's sales manager, prepared the following sales forecast for 2015. The forecasted sales prices include a 5 percent increase in the acoustic guitar price and a 10 percent increase in the electric guitar price, to cover anticipated increases in raw materials prices. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Price Acoustic guitar sales $1,450 400 510 370 680 Electric guitar sales $2,600 300 90 150 200