Question

Problem D5-31 Coronado Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Vanessa Aaron, the company’s sales manager, prepared the following sales forecast for 2018. 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 prices. Sales Price 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Acoustic guitar sales $1,240 210 250 290 330 Electric guitar sales $2,420 390 340 310 380 Prepare Coronado’s sales budget for 2018. Sales Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Acoustic: $ $ $ $ $ $ $ $ $ $ Electric: $ $ $ $ $ $ $ $ $ $ Total revenue $ $ $ $ $ LINK TO TEXT LINK TO VIDEO On December 31, 2017, Coronado had 30 acoustic guitars in stock—fewer than the desired inventory level of 84 guitars, based on the following quarter’s sales. The company has budgeted for sales of 240 acoustic guitars in the first quarter of 2019. Prepare the 2018 production budget for acoustic guitars. Production Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual LINK TO TEXT LINK TO VIDEO Each acoustic guitar requires a maple neck blank, which Coronado purchases for $40. On December 31, 2017, Coronado had 400 neck blanks in inventory. Spoilage during the production process results in a standard quantity of 1.5 necks per acoustic guitar. Because of recent delivery problems, Coronado wants to maintain an ending inventory equal to 50% of the following quarter’s production needs. Since the supplier has assured Coronado that the delivery issues will be resolved by the end of December, Coronado wants only 370 neck blanks in inventory on December 31, 2018. Prepare the purchases budget for neck blanks for 2018. (Enter "per guitar" value to 1 decimal place, e.g. 3.1. Round all other answers to 0 decimal places, e.g. 153.) Purchases Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual $ $ $ $ $ $ $ $ $ $

Answer 1

Solution:

Part 1 – Sales Budget 2018

Sales Budget for 2018
	Quarter				Annual
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Acoustic guitar	$260,400 (1240*210)	$310,000 (1240*250)	$359,600 (1240*290)	$409,200 (1240*330)	$1,339,200
Electric guitars	$943,800 (2420*390)	$822,800 (2420*340)	$750,200 (2420*310)	$919,600 (2420*380)	$3,436,400
Total Revenue					$4,775,600

Part 2 & Part 3 --- Can you please provide the original question format to understand it better and provide you the correct solution as you desired