Select Manufacturing Sells a Variety of Office Products Including Two-Drawer

Multiple Choice

Select Manufacturing sells a variety of office products including two-drawer file cabinets. On June 30, the company had 1,200 cabinets in inventory. The company's policy is to maintain a cabinet inventory equal to 20% of next month's sales. The company expects the following sales activity for the third quarter of the year: In addition, October's sales are projected to be 10,000 cabinets. What is the total required production for the third quarter?

A) 23,600 cabinets
B) 24,400 cabinets
C) 25,600 cabinets
D) 26,800 cabinets