PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO 8-5, 8-3a, f, g, h) Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information Quarter 1 Quarter 2 Quarter 3 Quarter 4 49,000 78,000 39,000 78,000 Budgeted Unit Sales Each T-shirt is expected to sell for $24 The purchasing manager buys the T-shirts for $10 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 34 percent of the next quarter's sales demand. Selling and administrative expenses are budgeted at $98,000 per quarter plus 14 percent of total sales revenue. Required 1. Determine budgeted sales revenue for each quarte Quarter 1 Quarter 2Quarter 3 Budgeted Sales Revenue 2. Determine budgeted cost of merchandise purchased for each quarter. Quarter 1 Quarter2 Quarter3 Budgeted Cost of Merchandise Purchased