Please explain in detail

3-33. The sales budget for Merita Medallion Company shows budgeted sales (in medallions) for December and the first four months of next year: Medallions December 100 000 January 40 000 February 90 000 March 150 000 April 50 000 Required: Prepare a budget for the number of medallions Merita needs to purchase in the first three months of next year for each of the following two independent situations: a. The business's policy is to have inventory on hand at the end of each month equal to 15 per cent of the following month's sales requirement. b. The business's policy is to keep each month's ending inventory to a minimum without letting it fall below 5000 medallions. Assume that the 1 December inventory has 5000 medallions and that the business's only supplier is willing to sell a maximum of 125 000 medallions to the business per month