High Flyers manufactures competition stunt kites. In November, Jerry Box 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		41,000		34,000		37,000		112,000
	Desired ending inventory		6,800		7,400		2,400		2,400
	Kites needed		47,800		41,400		39,400		114,400
	Less beginning inventory		8,200		6,800		7,400		8,200
	Budgeted production		39,600		34,600		32,000		106,200

Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had 6,000 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 15% of the next month's sales volume. (a) Create a "new" production budget for the first quarter.