Mandelbaum Company is preparing its master budget for 2021. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales: Sales for the year are expected to total 1,700,000 units. Quarterly sales are 21%, 25%, 26%, and 28%, respectively. The sales price is expected to be $40 per unit for the first three quarters and $46 per unit beginning in the fourth quarter. Sales in the first quarter of 2022 are expected to be 10% higher than the budgeted sales for the first quarter of 2021. 2 Production: Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales volume. 3 Instructions: Prepare the sales and production budgets, by quarters, for 2021 (complete the highlighted cells). YOU MUST USE EXCEL 5 FORMULAS AND FEEDS FOR ALL CALCULATIONS. MANUAL ENTRIES WILL NOT EARN CREDIT. G Mandelbaum Company Sales Budget For the Year Ending December 31, 2021 10 Quarter 11 2 3 4 Y car 12 Expected Unit Sales 13 Unit Selling Price 14 Total 15 16 17 Mandelbaum Company 18 Production Budget 19 20 21 22 Expected Unit Sales 23 Add: Desired Ending Inventory 24 Total Required Units 25 Less: Beginning FG Inventory 26 Purchases 27 281. Follow instructions in the Excel template to complete the budget activity. 2. Respond to the following items related to budgets: a. Explain the difference between a Static budget and a Flexible budget. b. Under what circumstances is a static budget more useful? c. Under what circumstances is a flexible budget more useful? 3. Describe and explain each of the elements of a master budget and specifically explain how these elements interrelate with each other