Figure 1 Projected Sales for Sommers, Inc., for Next Year and Beginning

Multiple Choice

Figure 1
Projected sales for Sommers, Inc., for next year and beginning and ending inventory data are as follows:
The selling price is £40 per unit. Each unit requires four pounds of material which costs £6 per pound. The beginning inventory of raw materials is 12,000 pounds. The company wants to have 3,000 pounds of material in inventory at the end of the year.
-Refer to Figure 1. According to Sommers' production budget, how many units should be produced?

A) 54,000
B) 46,000
C) 62,000
D) 38,000