Question 3 Rani Lopez owner of Rani Flowers and Gifts produces gift baskets for various special occasions.Each gift basket includes fruit or assorted small gifts (e.g a coffee mug.deck o cards,novelty cocoa mixes,scented soap) in a basket that is wrapped in colourful cellophane. Rani has estimated the following unit sales of the standard gift basket for the rest of the year and for January of next year. September October November December January units 250 200 230 380 100 Rani likes to have 5% of the next month's sales needs on hand at the end of each month. This requirement was met on August 31. Two materials are needed for each gift basket: Fruits Small gifts 1 kg 6 items The materials inventory policy is to have 5% of the next month's fruit needs on hand and 30% of the next month's production needs of small gifts.(The relatively low inventory amount for fruit is designed to prevent spoilage). Materials inventory on September 1 met this company policy Required: a) Prepare a production budget for September, October, November and December for gift basket. (Note: Round all answers to the nearest whole unit). (7 marks) b) Prepare a direct materials purchases budget for the two types of materials used in production of gift basket for the months of September, October and November. (Note: Round answers to the nearest whole unit). (15 marks) c) Why do you thinks there is such a big difference in budgeted units from November to December ? Why did Rani budget fewer units in January than in December