Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 30,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be:
A) 82,500 pounds.
B) 165,000 pounds.
C) 200,000 pounds.
D) 205,000 pounds.