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?

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Vinyl Briefcases Leather Briefcases First quarter. Second quarter Third quarter Fourth quarter 130 160 300 280 870 110 150 220 230 710 Total