Rockville Cabinet Company makes and sells two products: 2 -drawer and + drawer cabinets. The sales forecasts for these cabinets for the next four quarters are as follows:

\begin{tabular}{|c|c|c|}

\hline & \begin{tabular}{l}

2-Drawer \\

Cabinets

\end{tabular} & \begin{tabular}{l}

4-Drawer \\

Cabinets

\end{tabular} \\

\hline 1st quarter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . & 30 & 30 \\

\hline 2nd quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . & 50 & 60 \\

\hline 3rd quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . & 90 & 76 \\

\hline 4th quarter . . . . . . . . . . . . . . . . . . . . . . . . . & $9 \mathrm{\pi}$ & 48 \\

\hline . . . . . . . . . . . . & $\underline{\underline{266}}$ & $\underline{\underline{214}}$ \\

\hline

\end{tabular}

On January 1, Rockville has a stock of 40 completed 2 -drawer cabinets and 304 -drawer cabinets. Experience indicates that Rockville must maintain an inventory equal to onehalf of the next quarter's sales.

1. How many 2-drawer and 4-drawer cabinets must be produced during each of the first three quarters to meet sales and inventory demands?

2. Interpretive Question: Assume Rockville is a wholesale merchandising company instead of a manufacturing company. How would the budget information provided in (1) change?