At January 1, 2010, Estrada, Inc

Multiple Choice

At January 1, 2010, Estrada, Inc. has beginning inventory of 2,000 surfboards. Estrada estimates it will sell 5,000 units during the first quarter of 2010 with a 12% increase in sales each quarter. Estrada's policy is to maintain an ending inventory equal to 25% of the next quarter's sales. Each surfboard costs $100 and is sold for $150. How much is budgeted sales revenue for the third quarter of 2010?

A) $225,000
B) $975,000
C) $940,800
D) $6,272