Magenta Mobile has budgeted sales of its phones for the next five months as follows:

June	44,250 units
July	26,000 units
August	24,250 units
September	49,250 units
October	29,500 units

The company is now in the process of preparing a production budget for the third quarter. Past experience has shown that end-of-month inventory levels should equal 16% of the following months unit sales. The inventory at the end of May was 7,080 units.

How many phones should Magenta Mobile produce in August?

Multiple Choice

• 28,250 units

• 32,130 units

• 20,370 units

• 25,050 units