Company X has budgeted sales and production (in units) over the two months as follows:

January:

Sales 50,000

Production 52,000

February:

Sales ?

Production 64,000

December closing stock is 10,000 units. A minimum of 20% of the next month's sales (in units) must be maintained at the end of each month. March sales are expected to be 80,000. Budgeted sales for February would be

1. 78,000

2. 64,000

3. 60,000

4. Not enough information to calculate

5. 52,000