McDonald Industries sales budget shows quarterly sales for the next year as follows: Quarter 19,000; Quarter 27,000; Quarter 311,000; Quarter 413,000. Company policy is to have a target finished-goods inventory at the end of each quarter equal to 5% of the next quarter's sales. Budgeted production for the second quarter of next year would be: 1. 7,200 units 2. 7,550 units 3. 11,000 units O 4. 6,850 units