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A company provided the following information on sales for the coming year:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Units 40,000 40,000 30,000 80,000
Average selling price $5 $5 $5 $6
Question 1: Assuming that the beginning inventory is 3,000 units, and that the company policy is to have 25% of the next quarter's sales in ending inventory, which quarter will have the lowest production?
Option a) Quarter 3
Option b) Quarter 4
Option c) Quarter 1
Option d) Quarter 2
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