1. Red Company produces hand tools. A sales budget for the next four months is as follows: March 10,000 units, April 13,000 units, May 16,000 units and June 21,000 units. Red Company's ending finished goods inventory policy is 10% of the following month's sales. March 1 beginning inventory is projected to be 1,400 units. How many units will be produced in May?

   	a.	13,000
   	b.	16,500
   	c.	13,300
   	d.	12,700