Noel Enterprises has budgeted sales in units for the next five months as follows:

June	6,800 units
July	5,400 units
August	7,200 units
September	4,600 units
October	3,800 units

Past experience has shown that the ending inventory for each month must be equal to 10% of the next month's sales in units. The inventory on May 31 contained 400 units. The company needs to prepare a production budget for the second quarter of the year. The desired ending inventory for August is:

720 units

380 units

460 units

540 units