Projected sales for a business for next year, and beginning and ending inventory, are as follows:

Sales = 50,000 units; Opening inventory = 4,000 units; Required closing inventory = 8,000 units

Each unit requires 4 kgs of material which costs 6 per kg. The opening inventory of raw materials is 12,000 kgs. Requirement for 3,000 kgs for closing stock of materials. Contribution per unit of sales is 2.50. Labour time is 10 per hour (each product takes 1 hour of labour). Overheads are 3.50 per labour hour.

What is the businesss budgeted sales?

1. 2,160,000

2. 1,825,000

3. 2,000,000

4. 1,875,000