1. Lory's Fashions Inc.produces leather handbags.The production budget for the next four months is:July6,000units,August7,000,September8,000,October7,000.Each handbag requires0.5square meters of leather.Lory's Fashions,Inc.'s leather inventory policy is30%of next month's production needs.On July1leather inventory was expected to be1,000square meters.What will leather purchases be in July?(Roundyouranswer to thenearest wholeunit)

1. a.3,050 square meters
2. b.3,850 square meters
3. c.3,575 square meters
4. d.3,650 square meters