Target operating incomes and contribution margins. The Kaplan Company has a maximum capacity of 200,000 units per year Variable manufacturing costs (with respect to units manufactured) are S12 per unit. Fixed manufacturing overhead is S600,000 per \ear. Variable marketing, distribution, customer service, and administrative costs (with respect to units sold) are S5 per unit, and fixed marketing, distribution, customer service, and administrative costs are S300,000 per vear. The current selling price is S23 per unit. Kaplan has no beginning or ending inventory.