need help on 6.2

answer is 4,054.05

Page 4 of 10 6. Smoothit Inc is facing a problem with their 4th quarter carnings on December 25. Their earnings target is $2,500,000 and th data so far is as follows: 50,000 $25,000,000 ($500/unit) $10,000,000 ($200/unit) $10,000,000 (200/unit) Sales Revenue Variable COGS Fixed OH Fixed SG&A $2,000,000 5% Variable SG&A Smoothit has had a policy of having zero inventories at the end of ecach quarter, No further sales are possible during the year and all the units produced so far have been sold. The CEO is planning to cut the sales commission to meet the earnings target, but the accountant, Mr. Shady Helper, plans on suggesting producing items for inventory. How much will the sales commissions have to be cut in order to meet the earnings target? 6.1 25.000,000 (10.000.000) 50.000 /2,500,000 -0.02 15,000,000 Cio 000.0 00) Cio 00.000) Cat 3% 31000,000 2500,000 How many items need to be produced for inventory to meet the earnings target if the sales commission is left unchanged at 6.2 5%