Budgeted Sales for the First Quarter for Cullison Company, a Retailer

Multiple Choice

Budgeted sales for the first quarter for Cullison Company, a retailer, are as follows: $\begin{array}{lr}& \text { Budgeted Sales (Units) } \\\text { January } & 75,000 \\\text { February } & 100,000 \\\text { March } & 110,000\end{array}$ Cullison started the year with an inventory of 7,500 units. The company likes to maintain an inventory equal to 10 per cent of next month's budgeted sales. Budgeted purchases in units for February would be

A) 111,000.
B) 110,000.
C) 101,000.
D) 100,000.