Jolly Company produces hula hoops. Jolly Company has the following sales projections for the upcoming year:
First quarter budgeted hula hoop sales in units
22,900
Second quarter budgeted hula hoop sales in units
80,000
Third quarter budgeted hula hoop sales in units
22,000
Fourth quarter budgeted hula hoop sales in units
26,000
Jolly Company wants to have 10% of the next quarter's sales in units on hand at the end of each quarter. Inventory at the beginning of the year was
3, 900 hula hoops. How many hula hoops should Jolly Company produce during the first quarter?
A.
27,000
B.
34,800
C.
19,000
D.
22,900
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