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: Dudgeted Unit Sales Quarter 1 Quarter 2 Quarter 3 Quarter 40,000 60,000 30,000 60,000 Each T-shirt is expected to sell for $15. The purchasing manager buys the T-shirts for $6 each The company needs to have enough T-shirts on hand at the end of each quarter to fill 25 percent of the next quarter's sales Selling and administrative expenses are budgeted at $80,000 per quarter plus 10 percent of total sales revenue. demand Required: 1. Determine budgeted sales revenue for each quarter. Quarter 1 Quarter 2 Budgeted Sales Revenue Quarter 3 2. Determine budgeted cost of merchandise purchased for each quartet Quarter 1 Budgeted Cont of Merchandise Purchased Quarter 2 Quarter 3 2. Determine budgeted cost of merchandise purchased for each quarter. Quarter 1 Quarter 2 Quarter 3 Budgeted Cost of Merchandise Purchased 3. Determine budgeted cost of good sold for each quarter. Quarter 1 Quarter 2 Quarter 3 Budgeted Cost of Goods Sold 4. Determine selling and administrative expenses for each quarter. Quarter 1 Quarter 2 Quarter 3 Budgeted Selling and Administrative Expenses work 8 6 Saved Budgeted Selling and Administrative Expenses ed 5. Complete the budgeted Income statement for each quarter. nces RED CANYON T-SHIRT COMPANY Budgeted Income Statement Quarter 1 Quarter 2 Quarter 3 Budgeted Gross Margin Budgeted Net Operating Income