Next years sales forecast shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12 per unit, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units.

The desired ending inventory of B is 3,000 units. Budgeted production of Product B for the year would be

a. 26,500 units b. 24,500 units c. 22,500 units d. 23,200 units