Revenues and production budget. Saphire, Inc., bottles and distributes mineral water from the…

Revenues and production budget. Saphire, Inc., bottles and distributes mineral water from the company's natural springs in northern Oregon. Saphire markets two products: 12-ounce disposable plastic bottles and 1-gallon reusable plastic containers. Required 1. For 201 8, Saphire marketing managers project monthly sales of 500,000 12-ounce bottles and 130,000 1-gallon containers. Average selling prices are estimated at $0.30 per 12-ounce bottle and $1.60 per 1-gallon container. Prepare a revenues budget for Saphire, Inc., forth year ending December 31, 2018.

2. Saphire begins 2018 with 980,000 12-ounce bottles in inventory. The vice president of operations requests that 12-ounce bottles ending inventory on December 31, 2018, be no less than 660,000 bottles. Based on sales projections as budgeted previously, what is the minimum number of 12-ounce bottles Saphire must produce during 2018?

3. The VP of operations requests that ending inventory of I-gallon containers on December 31, 2018, be 300,000 units. If the production budget calls for Sa phi re to produce 1,200,000 I-gallon containers during 2018, what is the beginning inventory of I-gallon containers on January 1, 2018?

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