Aron Company Makes Computer Screens, Model 1 and Model 2

question 36

Essay

Aron Company makes computer screens, Model 1 and Model 2. Aron anticipates selling the screens as follows:
The inventory on 1/1/12 is 2500 units of Model 1 and 3000 units of Model 2. Aron wants to have on hand 45% of the anticipated sales of the following month for each model. Prepare a production budget for the first 3 quarters of 2012 for both models.
$$\begin{array} { | l | c | c | } \hline & \text { Unit of } & \text { Units of } \\\hline & \text { Model 1 } & \text { Model 2 } \\\hline \text { Quarter ending 3/31 } & 5,000 & 6,000 \\\hline \text { Quarter ending 6/30 } & 4,500 & 5,500 \\\hline \text { Quarter ending 9/30 } & 5,500 & 6,500 \\\hline \text { Quarter ending 12/31 } & 6,000 & 7,000 \\\hline\end{array}$$

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Definitions:

Corporate Debtors

Businesses that owe money to creditors and are responsible for repaying debt.

Reaffirmation Agreement

A legal document filed in bankruptcy proceedings where the debtor agrees to repay a portion or all of an outstanding debt.

Bankruptcy

A legal process allowing individuals or businesses that cannot meet their financial obligations to eliminate or repay their debts under the protection of the law.

Discharged

This term refers to the process by which an obligation or debt is formally nullified or released, such as when a bankruptcy court discharges a debtor's obligations.