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To solve the problem related to the production budget for "Insomniax," let's analyze the provided table and the information:

### Given:
1. **Budgeted Sales** for each quarter (Q1 to Q5).
2. **Desired Ending Inventory**: 30% of the next quarter's expected sales.
3. **Beginning Inventory** for Quarter 1 is given.

### Goal:
- **Required Production for Quarter 2 (Q2)** needs to be calculated.

### Steps to Solve:

1. **Determine the Desired Ending Inventory for Q2:**
   - Desired Ending Inventory for Q2 is 30% of Q3's sales.
   - \( \text{Q3 Sales} = 68,000 \)
   - Desired Ending Inventory for Q2 \( = 0.30 \times 68,000 = 20,400 \)

2. **Determine the Beginning Inventory for Q2:**
   - Beginning Inventory for Q2 is the Desired Ending Inventory of Q1.
   - Desired Ending Inventory for Q1 \( = 0.30 \times 57,000 = 17,100 \)
   - Thus, Beginning Inventory for Q2 \( = 17,100 \)

3. **Calculate the Required Production for Q2:**
   - Required Production \( = \text{Budgeted Sales for Q2} + \text{Desired Ending Inventory for Q2} - \text{Beginning Inventory for Q2} \)
   - \( \text{Budgeted Sales for Q2} = 68,000 \)
   - \( \text{Desired Ending Inventory for Q2} = 20,400 \)
   - \( \text{Beginning Inventory for Q2} = 17,100 \)
   - \( \text{Required Production for Q2} = 68,000 + 20,400 - 17,100 = 71,300 \)

Given this calculation, the correct answer is not listed among the options, which suggests either a mistake in the provided options or a potential calculation error. However, based on the steps, **71,300 units** should be the production requirement for Q2.

Would you like to explore why there might be a discrepancy, or do you want to adjust any part of the calculation?

### Possible Next Questions:
1. What is the desired ending inventory for Q3?
2. How would the production change if sales expectations for Q3 increased by 10%?
3. What would be the effect on Q4 production if the ending inventory target changed to 40%?
4. How does the beginning inventory for each quarter impact the production needs?
5. What would be the required production if the beginning inventory for Q2 was 19,000 units?
6. If the sales for Q4 were reduced to 80,000 units, how would this impact Q3 production?
7. What would be the production requirement if Q5's sales increased by 15%?
8. How does adjusting the desired ending inventory percentage affect overall production planning?

**Tip:** Always double-check the calculation for each step to ensure accuracy, especially when data seems inconsistent with provided options.

Learn how to calculate the required production for Quarter 2 in inventory management. This problem involves analyzing budgeted sales, beginning and desired ending inventory, and applying mathematical models to determine production requirements.

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