Keggler's Supply is a merchandiser of three different products. The company's February 28 inventories are Problem 20-5A footwear, 20,000 units; sports equipment, 80,000 units; and apparel, 50,000 units. Management believes Merchandising: that excessive inventories have accumulated for all three products. As a result, a new policy dictates that Preparation and analysis ending inventory in any month should equal 30% of the expected unit sales for the following month of purchases budgets Expected sales in units for March, April, May, and June follow. P4 Budgeted Sales in Units March April May June Footwear Apparel40,000 38,000 3700 25,000 Required 1. Prepare a merchandise purchases budget (in units) for each product for each of the months of March, Check 1 March budgeted purchases: Footwear, 2,500; Sports equip., 17,000 Apparel, 1,400 April, and May. Analysis Component 2. The purchases budgets in part 1 should reflect fewer purchases of all three products in March com- pared to those in April and May. What factor caused fewer purchases to be planned? Suggest busines conditions that would cause this factor to both occur and impact the company in this way