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Keep-it-Cool Products Inc. manufactures a medium-sized drink cooler. At June 30, the company had 5,000 coolers in inventory. The company's policy is to maintain a

Keep-it-Cool Products Inc. manufactures a medium-sized drink cooler. At June 30, the company had 5,000 coolers in inventory. The company's policy is to maintain a cooler inventory equal to 15% of next month's sales. The company expects the following sales activity for the third quarter of the year:

July

50,000 coolers

August

40,000 coolers

September

25,000 coolers

How many coolers should be produced in August?

37,750 coolers

36,250 coolers

42,250 coolers

43,750 coolers

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