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2. Budgeting Odds and Ends sells books and various other reading-related products. One of the store's most popular products is a book pillow for hard cover and soft cover books. The pillows each sell for $8.00. Originally the pillows were handmade by a local artisan. The store's owner has been impressed with the demand for the pillow and has recently begun a small manufacturing company to produce and distribute the pillows to other stores. Estimated sales for the fourth quarter (in units) are as follows: Historically, the cash collection of sales has been as follows: 55 per cent of sales are collected in the month of sale, 35 per cent of sales are collected in the month following the sale and 9 per cent of sales are collected in the second month following sale. The remaining 1 per cent is never collected because customers do not pay. Each pillow requires half a metre (0.5m) of fabric that costs, on average, $6 per metre. The company budgets to have the following raw materials inventory of fabric at the beginning of each month: . Calculate the total budgeted sales revenue for the fourth quarter of the year (Oct, Nov and Dec) based on the above information. (3 marks) Calculate the cash from sales that the company expects to receive in the month of December. (3 marks) Calculate how many pillows need to be manufactured in November. The company wants to maintain a 10 per cent inventory at the end of each month based on the next month's estimated sales. (3 marks) Calculate the budgeted fabric purchases for November

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