The sales budget for Modesto Corp. shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of Product B is 3,000 units. Budgeted purchases of Product B for the year would be:

Multiple Choice

24,500 units.

22,500 units.

16,500 units.

26,500 units.

20,500 units.