Concord manufactures competition stunt kites. In November, Michael Jones prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales. January February March Quarter Budgeted sales 44,000 31,000 34,000 109,000 Desired ending inventory 6,200 6,800 2,400 2,400 Kites needed 50,200 Less beginning inventory 8,800 6,200 37,800 36,400 111,400 8,800 6,800 Budgeted production 41,400 31,600 29,600 102,600 Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had 5,000 completed kites on hand. He decided that given the slow sales in December, the company should decrease its desired ending inventory level from 20 to 10% of the next month's sales volume. (a) Prepare a new production budget for the first quarter. January 44000 3100 February 31000 3400 March 34000 Quarter 109000