Clare Enterprises has budgeted sales for the next five months as follows:

January 3,800 units

February 6,800 units

March 5,400 units

April. 7,200 units

May. 4,600 units Past experience has shown that the ending inventory for each month should be equal to 10% of the next month's sales in units. The inventory on December 31 contained 400 units, which was in excess of the desired level of inventory. The company needs to prepare a Production Budget for the first quarter of the year.

10. The desired ending inventory for April is: A. 460 units B. 540 units C. 720 units D. 680 units