"Insomniax" is a beverage company that produces and sells energy drinks loaded with sugar and caffeine. You have been given the production budget for the upcoming year. You quickly notice that the intern has managed to leave out a number of figures on the sheet. Additionally, you've been told that the desired level of inventory at the end of a quarter is 25% of the next quarters' expected sales. At the end of the previous quarter, the production department met that target. You've been asked to fill in the missing information.

Production Budget

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5

Budgeted 15 000 25 000 10 000 15 000 20 000

Sales

Add: Desired 6250 2500 3750 ?

Ending

Inventory

Total Needs 21 250 27 500 ? ?

Less:

Beginning

Inventory 5 000 6 250 2 500 3 750

Required

Production ? ? ? ?

The Required Production for Quarter 2 is:

a.28 750 unitsb.11 250 unitsc.21 250 unitsd.16 250 units