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Noel Enterprises has budgeted sales in units for the next five months as follows: January 6,800 units February 5,400 units March 7,200 units April 4,600

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

January 6,800 units
February 5,400 units
March 7,200 units
April 4,600 units
May 3,800 units

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 December 31 contained 400 units. The company needs to prepare a production budget for the second quarter of the year. The total number of units to be produced in February is:

Multiple Choice

  • 5,220.

  • 5,580.

  • 5,400.

  • 6,120.

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