Question 2

Please Answer question 2

Blossom Enterprises is a portable hot tub manufacturer. The company produces both 2-person and 4-person hot tubs. James Smith, the company's sales manager, prepared the following sales forecast for 2021 . The forecasted sales prices include a 5 percent increase in the 2-person spa price and a 10 percent increase in the 4-person spa price, to cover anticipated increases in raw materials prices. Prepare Blossom's sales budget for 2021. On December 31, 2020, Blossom had 60, 2-person spas in stock-fewer than the desired inventory level of 80 , based on the following quarter's sales. The company has budgeted for sales of 400, 2-person spas in the first quarter of 2022. Prepare the 2021 production budget for 2-person spas