Please use the following information to answer the next 2 questions.

Sarah Company projected sales budget for the next three months is as follows:

Units

May 70,000

June 70,000

July 90,000

Beginning inventory for the year is 25,000 units. Ending inventory for each month should be 25% of the next months sales.

3. How many units should the company produce in May?

a. 62,500

b. 90,000

c. 70,000

d. 78,000

4. How many units need to be available for sale in June?

a. 90,000

b. 106,500

c. 92,500

d. 70,000