Brislin Gifts Makes Ceramic Mugs and Has the Following Amounts

Brislin Gifts makes ceramic mugs and has the following amounts during 2017 (Assume the same unit costs in all years) : \begin{array}{lr}\text { Selling price } & \$ 9.00 \text { per mug } \\\text { Variable production cost } & \$ 2.50 \text { per mug } \\\text { Variable selling cost } & \$ 1.10 \text { per mug } \\\text { Fixed production cost } & \$ 100,000 \text { per month }\\\text { Fixed selling and administrative cost }& \$ 60,000 \text { per month }\\end{array}
$\text { Production and sales in units for the first three months of } 2017 \text { are as follows: }$

$\begin{array}{lll}\text { Year}&\text { Production}&\text { Sales }\\\text { January } & 50,000 & 44,000 \\\text { February } & 40,000 & 45,000 \\\text { March } & 44,000 & 46,000\end{array}$ Inventory at January 1, 2017 consisted of 1,000 mugs.How many units will remain in inventory at the end of February?

A) 2,000
B) 0
C) 7,000
D) 6,000