Question
Saphire, Inc., bottles and distributes mineral water from the companys natural springs in northern Oregon. Saphire markets two products: 12-ounce disposable plastic bottles and 1-gallon
Saphire, Inc., bottles and distributes mineral water from the companys natural springs in northern Oregon. Saphire markets two products: 12-ounce disposable plastic bottles and 1-gallon reusable plastic containers.
For 2021, Saphire marketing managers project monthly sales of 500,000 12-ounce bottles and 130,000 1-gallon containers. Average selling prices are estimated at $0.30 per 12-ounce bottle and $1.60 per 1-gallon container. Prepare a revenues budget for Saphire, Inc., for the year ending December 31, 2021.
Saphire begins 2021 with 980,000 12-ounce bottles in inventory. The vice president of operations requests that ending inventory of 12-ounce bottles on December 31, 2021, be no less than 660,000 bottles. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Saphire must produce during 2021?
The VP of operations requests that ending inventory of 1-gallon containers on December 31, 2021, be 300,000 units. If the production budget calls for Saphire to produce 1,200,000 1-gallon containers during 2021, what is the beginning inventory of 1-gallon containers on January 1, 2021?
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