teridian Industries manufactures and sells two models of watches, Prime and Luxuria. It expects to sell 3900 units of Prime nd 1600 units of Luxuria in 2016. The following estimates are given for 2016: Selling price Direct materials Direct labor Manufacturing overhead Prime Luxuria $200 $500 50 60 40 150 80 110 Meridian had an inventory of 200 units of Prime and 75 units of Luxuria at the end of 2015. It has decided that as a measure counter stock outages it will maintain ending inventory of 370 units of Prime and 250 units of Luxuria. ach Luxuria watch requires one unit of Crimpson and has to be imported at a cost of $10. There were 110 units of Crimpson stock at the end of 2015. The management does not want to have any stock of Crimpson at the end of 2016. How many units of Prime watches must be produced in 2016? 4270 units 3700 units 4070 units 3900 units