Superior Industries' sales budget shows quarterly sales for the next year as follows: $$\begin{array}{ll}\text{ Quarter }& \text{ Sales (units) }\\ \text{ First }& 10,000\\ \text{ Second }& 8,000\\ \text{ Third }& 12,000\\ \text{ Fourth }& 14,000\end{array}$$ Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the next quarter's sales. Budgeted production in units for the second quarter should be:

A) 8,000.
B) 8,400.
C) 8,800.
D) 7,200.

Sales Budget

A detailed outline of a company's sales expectations for a certain period, including projected revenue and the resources needed to achieve those sales.

Inventory Policy

Guidelines and strategies a company employs to manage its inventory levels, ordering processes, and storage to balance customer demand with optimal inventory costs.

Production Units

Measures or quantities of product manufactured or processed in a given time frame.