Midland Company buys tiles and prints different designs on them for souvenir and gift stores. It buys the tiles from a small company in Europe, so at all times it keeps on hand a stock equal to the tiles needed for three months' sales. The tiles cost $1.25 each and must be paid for in cash. The company has 29,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months: January 13,100 February 17,600 March 13,300 April 14,600 May June 9,200 7,600 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in January, February, and March. Answer is complete but not entirely correct. MIDLAND COMPANY Merchandise Purchases Budget For the Period Ended March 31 (in units) January Units to be purchased Estimated cost 29,600 February 10,400 March 8,000 $ 37,000 $ 1,300 $ 9,875