Question

Toledo Tire Company, which has been in business for several years, produces and sells automobile tires, including their all-terrain RP7 tire. The 2018 sales budget for their all-terrain RP7 tire is as follows: Quarter RP7 tires 1 10,000 2 12,000 3 11,000 4 14,000 Per company policy: - management desires an ending inventory of tires each quarter equal to 20% of the next quarter's sales; - sales units of tires in the first quarter of 2019 are expected to be 25% higher than sales for the first quarter of 2018; - beginning inventory of tires on January 1, 2018 is anticipated to be 3,000 units.

Answer 1

Complete Question:

a) Calculate the anticipated production for the first quarter of 2018 for the RP7 tire

b) Calculate the anticipated beginning inventory of the RP7 model tires for the third quarter of 2018

c) Calculate the anticipated production for the fourth quarter of for the RP7 tire

Answer:

a) Anticipated Production for the first quarter of 2018 for the RP7 tire = 9,400

b) Anticipated beginning inventory of the RP7 model tire for the third quarter of 2018 = 2,200

c) Anticipated production for the fourth quarter of 2018 for the RP7 tire = 13,700

Step-by-step explanation:

The explanation is summarized by the table attached to this solution.