1. Prepare a sales budget for January through May. The selling price per unit is $40.00.

December of the previous year 40,000

January 90,000

February 80,000

March 70,000

April 40,000

2. Prepare a purchases budget for January through March, and the first quarter in total. Assume that the company only sells one product that can be purchased at $15.00 per unit. The market for this product is very competitive and customers highly value service such as quality and on time delivery of the product. Also assume that currently it is company policy that ending inventory should equal 90% of next months projected sales.

I already did question #1, I need help with question #2.