Superior Industries sales budget shows quarterly sales for the next year as follows: Quarter 1–10,000; Quarter 2–8,000; Quarter 3–12,000; Quarter 4–14,000. Company policy is to have a target finished-goods inventory at the end of each quarter equal to 20% of the next quarter’s sales.

Budgeted production for the second quarter of next year would be:

1. 7,200 units; 2. 8,800 units; 3. 12,000 units; 4. 10,400 units