January	40,000
February	50,000
March	55,000

Finished goods inventory at the end of 2017 is expected to be 10,000 units. On average, 25 percent of the sofas to be sold in the next month are produced and kept as ending balance in finished goods inventory. The planned selling price is $150 per unit.

4. 29. What would be the sales budget for February 2018 of Sanborn Sofas?

a.	$7,500,000
b.	$6,000,000
c.	$8,250,000
d.	$9,000,000

5. 30. How many sofas should be produced in January by Sanborn Sofas to fulfill the sales projections and maintain inventory?

a.	44,500
b.	28,000
c.	42,500
d.	52,500

6. 31. How many sofas should be produced in February by Sanborn Sofas to fulfill the sales projections and maintain inventory?

a.	51,250
b.	48,750
c.	52,500
d.	55,000