a) For the year 2016, P marketing managers project quarterly sales of 100,000 product A and 50,000 per quarter of product B. Average selling prices are estimated at $8.00 per product A and $6.00 per product B. Sales are collected 60% in the quarter of sale and 40% the quarter after sale. Prepare a revenue budget for the year ending December 31, 2016.

b) P begins 2016 with 80,000 of A in inventory. The vice president of operations requests that ending inventory on December 31, 2016 of product A be no less than 60,000 units. Based on sales projections as budgeted above, prepare a production budget for product A in 2016?

c) If each produced unit of A requires 3 pounds of material and we have 30,000 pounds at the beginning of the year and desire an ending inventory of 40,000 pounds, how many pounds need to be purchased?