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Nantucket Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to sell 3,800 units of Prime and 1,400 units of Luxuria

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Nantucket Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to sell 3,800 units of Prime and 1,400 units of Luxuria in 2020.The following estimates are given for 2020: Prime Luxuria Selling price $200 $500 Direct materials 60 90 Direct labor 40 180 Manufacturing overhead 40 140 Nantucket had an inventory of 250 units of Prime and 125 units of Luxuria at the end of 2019. It has decided that as a measure to counter stock outages it will maintain ending inventory of 400 units of Prime and 200 units of Luxuria. Each Luxuria watch requires one unit of Crimpson and has to be imported at a cost of $15. There were 120 units of Cn'mpson in stock at the end of 2019.The management does not want to have any stock of Crimpsc'm at the end of 2020. What is the amount budgeted for purchase of Crimpson in 2020? ~C:)~ O A. $22,125 0 B. $59,250 0 C. $20,325 0 D. $21,000

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