Sales Budget information: Fresno California Company plans to sell 3,000 pots and pans sets for the first quarter of this year. The sales volume is expected to increase by 5% each quarter for the remainder of the calendar year. The selling price of the pots and pans is $199 per set and will decrease by 10% in the fourth quarter. For simplicity, assume that all of the sales are cash sales.

Production Budget information: Using the Sales Budget results, the FCC, Inc. had 200 sets of pots and pans in finished goods inventory at the end of the previous year, so we can use that number as we start our production budget. We also want to always have at least 150 sets in our finished goods inventory at the end of each quarter, but we would like to end the year with 250 sets in inventory to start the following year.