1. Cassie's Candles is preparing a quarterly inventory purchases budget for the year. The sales budget that forecasts the number of pairs of candles expected to be sold follows:

Sales (# of candles)

• 1st Quarter = 42,000
• 2nd Quarter = 40,000
• 3rd Quarter = 35,000
• 4th Quarter = 60,000

The inventory policy for the store is that the total amount of inventory required to be on hand at the end of a month should be 25% of the number of candles expected to be sold during the following month.

How many candles should be included in the inventory purchases budget for the second quarter?

38,750

41,250

48,750

50,000