Care Manufacturers produces two products; Pureline and Furline. Both products use raw material fluoride and glycerol. Each unit of Pureline uses three (3) grams of fluoride and five (5) litres of glycerol. Each unit of Furline uses two (2) grams of fluoride and four (4) litres of glycerol. Each gram of fluoride is expected to cost $20 and a litre of glycerol $25. +Sales and finished goods inventory budget for the year 2020 are as follows: Pureline Furline Budgeted Sales Opening Inventory Closing Inventory Selling Price 20,000 units Budgeted Sales 3,500 units Opening Inventory Closing Inventory Selling Price 2,000 units $350 As at January 1, 2020, opening inventories of raw material are 800 grams of fluoride and 1,000 litres of glycerol. At the end of 2020, the company plans to hold 2,000 grams of fluoride and 1,800 litres of glycerol. The warehouse and stores managers have suggested that a provision should be made for damages and deterioration of items held in store, as follows. Products Pureline Furline Raw Materials Fluoride Glycerol Loss of 60 units Loss of 70 units Loss of 210 grams Loss of 120 liters Required: a. Prepare the following budgets both products for the year 2020: i. Sales 16,000 units 2,500 units 1,500 units $300 ii Production budget iii. Raw material usage budget iv. Raw Materials purchases b. Identify three (3) benefits that can be derived from budgeting. (3 marks) (11 marks) (6 marks) (15 marks) (3 marks)