(Solution) - Bannister Company makes and sells two products leather and viny -(2025 Original AI-Free Solution)

Paper Details

Bannister Company makes and sells two products: leather and vinyl briefcases. The sales forecasts for these briefcases for the next four quarters are as follows:

On January 1, Bannister has a stock of 100 completed leather briefcases and 80 vinyl briefcases.
Experience indicates that Bannister must maintain an inventory equal to one-half of the next quarter?s sales.
Required:
1. How many leather and vinyl briefcases must be produced during each of the first three quarters to meet sales and inventory demands?
2. Interpretive Question: Assume Bannister is a wholesale merchandising company instead of a manufacturing company. How would the budget information provided in part (1)change?