Strum Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional...

Strum Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Claire Strum, the company’s sales manager, prepared the following sales forecast for 2012. The forecasted sales prices include a 5 percent increase in the acoustic guitar price and a 10 percent increase in the electric guitar price, to cover anticipated increases in raw materials prices.