Homestyle Interiors Sells a Variety of Home Furnishings Including Sleeper

Multiple Choice

Homestyle Interiors sells a variety of home furnishings including sleeper sofas. On March 31, the company had 225 sofas in inventory. The company's policy is to maintain a sleeper sofa inventory equal to 15% of next month's expected sales. The company expects the following sales activity for the second quarter of the year: What is the projected production for May?

A) 1,600 sofas
B) 1,105 sofas
C) 1,585 sofas
D) 1,615 sofas