Cahuilla Corporation predicts the following sales in units for the coming four months: April, May, June, and July. Each month's ending finished goods inventory should be 40% of the next month's sales. The March 31 finished goods inventory is 172 units. A finished unit requires five pounds of direct material B at a cost of $3.00 per pound.

What is the budgeted production for May?

A) 430 units
B) 470 units
C) 490 units
D) 400 units

To calculate the budgeted production for May for Cahuilla Corporation, the specific sales predictions are required. However, they were not provided. Therefore, it's impossible to give an accurate answer. So none of the options are correct.

Explanation:

The question pertains to calculating the budgeted production for May based on given information including sales predictions, inventory maintenance standards and unit creation requirements for Cahuilla Corporation.

However, the question does not provide specific month-by-month sales predictions required to answer the question effectively.

Typically, to calculate the budgeted production, you'd need to add the desired ending inventory to the sales forecast and then subtract the beginning inventory. Without the sales forecasts or predictions, we cannot calculate the exact budgeted production for May.

The additional information provided regarding price, quantities supplied and demanded, and economies of scale, does not relate directly to the question asked and are therefore considered irrelevant in this context.

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