Meridian Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to sell

3 comma 7003,700

units of Prime and

1 comma 7001,700

units of Luxuria in 2016.The following estimates are given for 2016:

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	Prime	Luxuria
Selling price	$200	$500
Direct materials	50	60
Direct labor	50	190
Manufacturing overhead	90	130

Meridian had an inventory of

210210

units of Prime and

105105

units of Luxuria at the end of 2015. It has decided that as a measure to counter stock outages it will maintain ending inventory of

400400

units of Prime and

250250

units of Luxuria.Each Luxuria watch requires one unit of Crimpson and has to be imported at a cost of

$ 12$12.

There were

130130

units of Crimpson in stock at the end of 2015.The management does not want to have any stock of Crimpson at the end of 2016.

What is the amount budgeted for purchase of Crimpson in 2016?

A.

$ 20 comma 580$20,580

B.

$ 20 comma 400$20,400

C.

$ 46 comma 680$46,680

D.

$ 22 comma 140$22,140