Karmee Company has been accumulating operating data in order to prepare an annual profit plan. Details regarding Karmee's sales for the first 6 months of the coming year are as follows: Estimated Monthly Sales January $685,000 February 723,000 March 815,000 April 665,000 May 717,000 June 825,000 Type of Monthly Sale Cash sales 15% Credit sales 85% Month of sale One month following sale Collection Pattern for Credit Sales 25% 45% Second month following sale 30% Karmee's cost of goods sold averages 45% of the sales value. Karmee's objective is to maintain a target inventory equal to 35% of the next month's sales in units. Purchases of merchandise for resale are paid for in the month following the sale. The variable operating expenses (ott cost of goods sold) for Karmee are sales and are paid for in the month 1 the sale. The annual fixed operating expenses are presented below. All are incurred uniformly throughout and paid monthly except for insura property taxes. Insurance is paid January, April, July, and October.. taxes are paid twice a year in Ap October. Annual Fixed Operating CC Advertising Depreciation Insurance Property taxes Salaries