Please complete the below problems and submit your answers in the Week 4 Drop Box. See "Syllabus/Due Dates for Assignments & Exams" for due date information.
1.Martin & Sons, a small door manufacturer, sold 4,600 white six-panel doors for $130 each and 2,400 unfinished six-panel doors for $100 each. Mr. Martin feels that because home-owners are doing more themselves and the economy is down, that they may see an increase of 15% in sales of unfinished six-panel doors in 2012 and a corresponding 10% decrease in sales of white six-panel doors. He wonders if he lowered the price of the white six-panel doors to $120 each, that he may only see an 8% decline in sales of white six-panel doors and the corresponding increase in unfinished six-panel doors.
1. Prepare a 2012 sales budget assuming that Martin & Sons holds prices at the current level and sales quantity remains at the 2011 level.
2.Prepare a 2012 sales budget assuming that Martin & Sons holds prices at the current level and the decrease in white six-panel doors is realized as is the increase in unfinished six-panel doors.
3.Prepare a 2012 sales budget assuming that Martin & Sons lowers the price of white six-panel doors to $120 each and the decline in sales is as anticipated.
1.Moss Company has prepared a sales budget of 45,000 finished units for a three-month period. The company has an inventory of 16,000 units of finished goods on hand at December 31 and has a target finished goods inventory of 18,000 units at the end of the succeeding quarter. It takes three gallons of direct materials to make one unit of finished product. The company has an inventory of 60,000 gallons of direct materials at December 31 and has a target inventory of 50,000 gallons at the end of the succeeding quarter. How many gallons of direct materials should be purchased during the three months ending March 31?