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(Solved): Crane Enterprises is a portable hot tub manufacturer. The company produces both 2-person and 4-pers ...
Crane Enterprises is a portable hot tub manufacturer. The company produces both 2-person and 4-person hot tubs. Paul White, the company's sales manager, prepared the following sales forecast for 2021. The forecasted sales prices include a 5 percent increase in the 2-person spa price and a 10 percent increase in the 4-person spa price, to cover anticipated increases in raw materials prices.
On December 31,2020, Crane had 80,2-person spas in stock-fewer than the desired inventory level of 100 , based on the following quarter's sales. The company has budgeted for sales of 400,2 -person spas in the first quarter of 2022. Prepare the 2021 production budget for 2 -person spas.