Paradise Company Budgets on an Annual Basis for Its Fiscal

Multiple Choice

Paradise Company budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. $\begin{array}{lrr}&\text {Beginning}&\text { Ending}\\&\text {inventoy}&\text { inventory}\\ \text { Raw materials*} &40,000&50,000\\ \text {Finished goods } &80,000&50,000\\\end{array}$

* Three pounds of raw materials are needed to produce each unit of finished product.
If Paradise Company plans to sell 480,000 units during next year, the number of units it would have to manufacture during the year would be

A) 440,000 units.
B) 480,000 units.
C) 510,000 units.
D) 450,000 units.