Question 3 (15 marks) - Topic 7 Regal International produces three products. Dux. Margrave, and Comte. The company operates a continuous manufacturing process and does not have any work. in-process inventory. Projected sales (in units) for the three products for 20X7 and 20X8 are as follow: 20x7 20X8 Dux 60,000 65,000 Margrave 40,000 35,000 Comte 25,000 30,000 The budgeted opening inventory for each product in a particular year is equal to 10% of the projected sales of the product The per unit requirements of plastic for the three products is provided as follow: Unit Price Quantity per unit Dux Margrave Comte Kg $3.0/kg 1.2 kg 1 kg 0.5 kg Inventory of plastic at the beginning of a year is equal to 20% of previous year's usage. door e dall Required: a) Prepare a production budget for the three products for 20x7. (8 marks) b) Assume the usage of plastic in 20X6 was. 60.000 kg, determine Regal International's direct material budget for plastic for 20x7 (4 marks) c) Explain why many companies believe that cash budget is important