15 Sales, production and material purchases budgets LO2, 3, 4 Curiosity Corner sells books and various other reading-related products. One of the store's most popular products is a book pillow for hard cover and soft cover books. The pillows each sell for $8.00. Originally the pillows were handmade by a local artisan. The store's owner has been impressed with the demand for the pillow and has recently begun a small manufacturing company to produce and distribute the pillows to other stores. Estimated sales for the fourth quarter (in units) are as follows October November 6500 7 200 9 600 23300 December Total Each pillow requires /2 a metre of fabric that costs, on average, $6 per metre. Required a Prepare a sales budget for the fourth quarter based on the above information. b Prepare a production budget for the pllow manufacturing company. The company did not have any inventory of pillows at the end of September, but the company does want to maintain a 10 per cent inventory at the end of each month based on the next month's estimated sales. January's sales are expected to be low, given the post-holiday trends, and are estimated to be 4800 units. Prepare a fabric purchases budget. The company did not have any inventory of fabric at the end of September, but the company does want to maintain a fabric inventory equal to 20 per cent of the next month's material needs. January's projected production is expected to be 4820 units. c