Aron Company Makes Computer Screens,Model 1 and Model 2

question 22

Essay

Aron Company makes computer screens,Model 1 and Model 2.Aron anticipates selling the screens as follows: The inventory on 1/1/15 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 2015 for both models.

---

Definitions:

Consignment

A sales arrangement where goods are left with a third party to sell, but ownership remains with the supplier until sold.

Merchant Wholesalers

Businesses that buy goods in large quantities from producers to resell to retailers or other businesses, but not to end consumers.

Independently Owned

Refers to businesses or properties that are owned and operated by individuals or entities, not part of larger corporate groups or franchises.

Full-Line Wholesalers

Businesses that provide a complete range of goods within a specific sector.