Exercise 18-17 (Algorithmic) Production Budgeting Mobys Electric makes and sells
ID: 2376087 • Letter: E
Question
Exercise 18-17 (Algorithmic)
Production Budgeting
Mobys Electric makes and sells two kinds of portable music players-a CD player and an MP3 player. The sales forecasts for these players for the next four quarters are as follows:
At the beginning of the first quarter, Mobys has 25 CD players and 125 MP3 players in stock. Experience has shown that Mobys must maintain an inventory equal to two-thirds of the next quarter's sales.
How many players of each type must be produced during each of the first three quarters to meet sales and inventory demands? Round your answers to the nearest whole.
1st Quarter 2nd Quarter 3rd Quarter CD players MP3 players CD players MP3 players CD players MP3 players Expected sales Add desired ending inventory Total needed Less beginning inventory Budgeted productionExplanation / Answer
1st Quarter 2nd Quarter 3rd Quarter CD players MP3 players CD players MP3 players CD players MP3 players Expected sales 30 150 40 160 35 140 Add desired ending inventory 27 107 23 93 33 113 Total needed 57 257 63 253 68 253 Less beginning inventory 25 125 27 107 23 93 Budgeted production 32 132 36 146 45 160
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