Cody Manufacturing Started Doing Business on January 1^st of the Current

Multiple Choice

Cody Manufacturing started doing business on January 1^st of the current year.Cody estimates that its sales will be 9,000 units in the first quarter, 7,000 units in the second quarter, 14,000 units in the third quarter and 12,000 units in the fourth quarter.Cody's selling price is set at $20 per unit and is not expected to change during the year.Cody intends to have 10% of the next quarter's sales in its ending inventory each quarter.How many units should Cody budget for second quarter's production?

A) 6,300 units.
B) 9,700 units.
C) 7,700 units.
D) 7,000 units.
E) None of the above.