Problem \#6: Operating Budgets Cathy's Cookies produces cookies for resale at local grocery stores. The company is currently in the process of establishing a master budget on a quarterly basis for this coming fiscal year, which ends December 31. Prior year quarterly sales were as follows ( 1 unit =1 batch): Unit sales are expected to increase 20%, and each unit is expected to sell for $5. Management prefers to maintain ending finished goods inventory equal to 15% of next quarter's sales. Assume finished goods inventory at the end of the fourth quarter budget period is estimated to be 2,000 units. Required: (1) Prepare a sales budget for Cathy's Cookies. (2) Prepare a production budget for Cathy's Cookies. (3) What can you interpret about Cathy's Cookies Sales Budget? Trends