Module 9-3 Three litres of oil are required for each bottle of Caress, a very popular periume made by a small company in Canada. The cost of the oil is $1.50 per litre. Budgeted production of Caress is given below by quarters for Year 2 and for the first quarter of Year 3 : Yoor 2 Yoar 3 First Socond Third Fourth First Budgeted production, In bottles ......... 60,000 90,000 150,000 100,000 70,000 The oil has become so popular as a perfume ingredient that it has become necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of oil at the end of a quarter must be equal to 20% of the following quarter's production