Valerie Preston formed Palm-West Products, Inc, in 2013 when she obtained an exclusive franchise to nationally distribute designer windows. Recent high sales growth of the base window (WIND-B), along with expected sales growth for a new enhanced window (WIND-P), requires adding management team members. Ms. Preston is keenly aware of other growth-oriented companies within the designer window sector that have run out of cash and gone into bankruptcy. Seeing potentially viable businesses fail particularly concerns Ms. Preston and, consequently, she wants to ensure that sufficient cash will be available to accommodate PWP's expected growth. She would like to present a financial plan to PWP's board of directors and needs a financial model that can be used to address questions from top management and members of the board of directors. She would also like to provide the board with a graphical cost-volume-profit analysis. 1.1 Company information. Since Palm-West Products does not want to forfeit market share to competitors, it maintains a policy to never stock out of its windows. Therefore, the company maintains desired ending inventories equal to 75% of the next month's unit sales. In June, PWP began carrying a premium model WIND-P, which had the following estimated sales (see Exhibit 1). Exhibit 1. PWP's sales forocast and ocher sales infomation. 1.2 Group Exercise. Prepare a Production Budget for July and August