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Question - Wayans Company produces and sells automobile batteries, including the heavy-duty HD-240. The 2020 sales budget is as follows:
Quarter Units of HD-240
1 5,600
2 6,500
3 9,900
4 10,300
The January 1, 2020, inventory of HD-240 is 1,500 units. Management wants an ending inventory each quarter that is equal to 30% of the next quarter's sales. It expects sales in the first quarter of 2021 to be 20% higher. Prepare quarterly production budgets for each quarter for 2020.
To help the team understand, you have been asked to complete the budget using both Contribution Margin and Gross Margin.
regression analysis ltbrgtcontribution margin reporting ltbrgtcost-volume-profit analysis ltbrgtdifferential analysis
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