The correct answer is B. 4000 units.
Budget production is the number of units that a company plans to produce in a given period of time. It is calculated by taking the budget sales units and adding or subtracting the desired ending inventory and beginning inventory.
In this case, the budget sales units are 2000, the desired ending inventory is 3000, and the beginning inventory is 1000. Therefore, the budget production is:
Budget production = Budget sales units + Desired ending inventory – Beginning inventory
= 2000 + 3000 – 1000
= 4000 units
Option A is incorrect because it is the total number of units that the company plans to sell in the given period of time. Option C is incorrect because it is the number of units that the company currently has in inventory. Option D is incorrect because it is the total number of units that the company plans to produce in the given period of time plus the desired ending inventory.