Angel owns a Merchandising business that sells imported mugs from the asian countries. Angel purchases these mugs from an outside supplier, once every quarter. She needs to estimate the total quantities to be purchased in order to properly meet product demands for each quarter, without having to incur stock outs and loss of customers. Angel has forecasted that unit sales for each quarter will be as follows: 1st quarter: 15000 2nd Quarter: 25000 3rd quarter: 35000 4th quarter: 40000 Angel has initiated a policy that 10% of the anticipated sales for the following month must be kept minimum balance of the previous month's inventory. As the beginning of the 1st quarter, there are 15000 mugs unsold and Angel plans to keep 18000 mugs by the end of the fourth quarter. Each mug costs ₱75. a. Prepare a purchases budget expressed in quantities to be purchased. b. Prepare a purchases budget expressed in peso value.
Angel owns a Merchandising business that sells imported mugs from the asian countries. Angel purchases these mugs from an outside supplier, once every quarter. She needs to estimate the total quantities to be purchased in order to properly meet product demands for each quarter, without having to incur stock outs and loss of customers. Angel has
1st quarter: 15000
2nd Quarter: 25000
3rd quarter: 35000
4th quarter: 40000
Angel has initiated a policy that 10% of the anticipated sales for the following month must be kept minimum balance of the previous month's inventory. As the beginning of the 1st quarter, there are 15000 mugs unsold and Angel plans to keep 18000 mugs by the end of the fourth quarter. Each mug costs ₱75.
a. Prepare a purchases budget expressed in quantities to be purchased.
b. Prepare a purchases budget expressed in peso value.
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