Coronado Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Sharon Lee, the company’s sales manager, prepared the following sales forecast for 2022. The forecasted sales prices include a 5% increase in the acoustic guitar price and a 10% increase in the electric guitar price, to cover anticipated increases in raw materials prices
Coronado Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Sharon Lee, the company’s sales manager, prepared the following sales forecast for 2022. The forecasted sales prices include a 5% increase in the acoustic guitar price and a 10% increase in the electric guitar price, to cover anticipated increases in raw materials prices
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Coronado Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Sharon Lee, the company’s sales manager, prepared the following sales
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Sales Price
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1st Quarter
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2nd Quarter
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3rd Quarter
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4th Quarter
|
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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Acoustic guitar sales
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$1,250 | 240 | 270 | 310 | 340 | |||||||||||
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Electric guitar sales
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$2,100 | 400 |
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350 | 320 | 360 |
| On December 31, 2021, Coronado had 30 acoustic guitars in stock—fewer than the desired inventory level of 96 guitars, based on the following quarter’s sales. The company has budgeted for sales of 240 acoustic guitars in the first quarter of 2023. Prepare the 2022 production budget for acoustic guitars. |
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Production Budget
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|||||
|---|---|---|---|---|---|
|
1st Quarter
|
2nd Quarter
|
3rd Quarter
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4th Quarter
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Annual
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|
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select an opening production budget item
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enter a number of units
|
enter a number of units
|
enter a number of units
|
enter a number of units
|
enter a number of units
|
|
select a production budget item
|
enter a number of units
|
enter a number of units
|
enter a number of units
|
enter a number of units
|
enter a number of units
|
|
select a summarizing line for the first part
|
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