Smith Company produces leather belts. The production budget for the next four months is: July 5,500 units, August 7,300 units, September 8,100 units, October 8,600 units. Each belt requires 0.8 yards of leather. Smith's leather inventory policy is to have 20% of the next month's material needs on hand. On July 1 leather inventory was expected to be 1,400 yards. How many yards of leather will need to be purchased in August? Multiple Choice 7,385 yards 7,460 yards 5,968 yards 5,818 yards