Keggler's Supply isamerchandiser ofthree different products. The company's February 28 inventories are footwear, 20,000 units, sports equipment, 80,000 units, and-apparel, 50,000- units. Management.believes each of these inventories is too high. Asa result, a new policy dictates-that-endinginventory-in-any-month-should-equal-30%-of-the-expected unit-sales-for-the following month.-Expected salesin units for March, April, May,and-June follow.l March April May June Footwear Sports Equipment Apparel $15,000 $ $70,000 $ $40,000 $ 25,000$ 90,000 $ 38,000$ 32,000 S 95,000 $ 35,000 90,000 25,000 37,000 $ Required 1.+Prepare a merchandise purchases budget (in units) for each product for each of-the months of March, April, and-May.1 Check(1)-March.budgeted purchases: Footwear, 2,500; Sports equip., 17,000; Apparel, 1,4001 Analysis Componentl 2. Whatbusiness conditions might-lead-to inventory levels becoming too high?1 Merchandise Purchases Budget March Foot ear Budgeted Sales for the month Ratio of ending inventory 30% Budgeted ending inventory Add budgeted sales Required Units Less actual beginning inventory Budgeted Purchases to future sales available merchandise Sports Equipent Budgeted Sales for the month Ratio of ending inventory 30% Budgeted ending inventory Add budgeted sales Required Units Less actual beginning inventory Budgeted Purchases to future sales available merchandise Apparel Budgeted Sales for the month Ratio of ending inventory 30% Budgeted ending inventory Add budgeted sales Required Units Less actual beginning inventory Budgeted Purchases to future sales available merchandise