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Aron Company Makes Computer Screens, Model 1 and Model 2

Question 88

Essay

Aron Company makes computer screens, Model 1 and Model 2. Aron anticipates selling the screens as follows:
The inventory on 1/1/12 is 2500 units of Model 1 and 3000 units of Model 2. Aron wants to have on hand 45% of the anticipated sales of the following month for each model. Prepare a production budget for the first 3 quarters of 2012 for both models.
 Unit of  Units of  Model 1  Model 2  Quarter ending 3/31 5,0006,000 Quarter ending 6/30 4,5005,500 Quarter ending 9/30 5,5006,500 Quarter ending 12/31 6,0007,000\begin{array} { | l | c | c | } \hline & \text { Unit of } & \text { Units of } \\\hline & \text { Model 1 } & \text { Model 2 } \\\hline \text { Quarter ending 3/31 } & 5,000 & 6,000 \\\hline \text { Quarter ending 6/30 } & 4,500 & 5,500 \\\hline \text { Quarter ending 9/30 } & 5,500 & 6,500 \\\hline \text { Quarter ending 12/31 } & 6,000 & 7,000 \\\hline\end{array}

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