Super Paint has been produced since the company began production . The sales level of this product has been rather stagnant for the last 5 years , and that trend is expected to continue in the future .
You have made the following conclusions about the two different products : Super Paint
• Sales growth in units will continue to be stagnant .
• The more recent years are more representative of continuing unit sales than years in the further past .
• Exponential Smoothing will be an appropriate unit sales projection method to use .
Stupendous Paint
• Unit sales growth will continue on its current increasing trend
• An exponential growth function with the year being the independent variable and the sales volume being the dependent variable will be an appropriate sales projection method .
2006 DIRECT MATERIAL AND INVENTORY BUDGET INFORMATION
The production department worked in conjunction with both the sales and purchasing departments in developing desired projected inventory levels for December 31 , 2006 . Information regarding beginning and desired ending inventories for 2006 are as follows :
Hint : Remember that each gallon of paint requires two pounds of pigment .
2006 DIRECT LABOR BUDGET INFORMATION