Use the Following Information for Questions

question 141

Multiple Choice

Use the following information for questions
At January 1, 2012, Jake, Inc.has beginning inventory of 4,000 surfboards.Jake estimates it will sell 15,000 units during the first quarter of 2012 with a 10% increase in sales each quarter.Jake's policy is to maintain an ending inventory equal to 25% of the next quarter's sales.Each surfboard costs $200 and is sold for $250.
-How many units should Jake produce during the first quarter of 2012?

• A)15,125
• B)15,000
• C)12,500
• D)11,000