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Grant Company estimates its sales at 40,000 units in the first quarter and that sales will increase by 4,000 units each quarter over the year. It has, and desires, an ending inventory of finished goods equal to 25% of the next quarter's sales. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale.

Production in units for the third quarter should be budgeted at??

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