Waterway Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Nancy Jackson, 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 price. On December 31, 2021, W budgeted for sales of 240 acoustic guitars in the first quarter ofaterway had 30 acoustic guitars in stock - fewer than the desired inventory level of 100 guita based on the following quarter's sales. The company has budget for sales of 240 acoustics guitars in the 1st quarter of 2023. Prepare the 2022 production budget for acoustic guitars.
Waterway Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Nancy Jackson, 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 price. On December 31, 2021, W budgeted for sales of 240 acoustic guitars in the first quarter ofaterway had 30 acoustic guitars in stock - fewer than the desired inventory level of 100 guita based on the following quarter's sales. The company has budget for sales of 240 acoustics guitars in the 1st quarter of 2023. Prepare the 2022 production budget for acoustic guitars.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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am. 121.
Transcribed Image Text:Waterway Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional
musicians. Nancy Jackson, 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 price. On December 31, 2021, W
budgeted for sales of 240 acoustic guitars in the first quarter ofaterway had 30 acoustic guitars in stock - fewer than the desired inventory level of 100 guitars,
based on the following quarter's sales. The company has budget for sales of 240 acoustics guitars in the 1st quarter of 2023. Prepare the 2022 production
budget for acoustic guitars.
Transcribed Image Text:Acoustic guitar sales
Electric guitar sales
Sales Price
$1,350
$2,450
1st Quarter
250
400
2nd Quarter
280
350
3rd Quarter
300
320
4th Quarter
350
360
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