1. Sally wants to purchase a new sofa because she purchased a new home at the beach. Sally visited two stores and she narrowed down her choices to a red sofa and a blue sofa. Sally owns pets so she considers the cost of insurance to insure each sofa. Sally compiled the following data and she realizes that the sales tax to purchase the sofa is 10% in her state. (5 points) Prion Insurance Red Sofa $8,000 $950 Blue Sofa $6,400 $350 Which sofa should Sally purchase? What costs are relevant in her decision? Why? 2. Norman Company manufactures two models of microcassette recorders, VCH and MTV. Based on the following production data for April of the current year, prepare a production budget for April. (10 points) VCH MTV Estimated inventory (units), April 1 2,600 3,900 Desired inventory (units), April 30 5,200 3,250 Expected sales volume (units): Eastern zone 10,500 12,960 Midwest zone 17,000 19,800 Western Zone 9,840 4,500