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On December 25, a company realizes that it will not meet its target for the year. The earnings target based on absorption-costing is $1,000,000 and

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On December 25, a company realizes that it will not meet its target for the year. The earnings target based on absorption-costing is $1,000,000 and the data so far is as follows: Sales Revenue $10.000.000 $200/unit Variable COGS $4,000,000 $80/unit Fixed manufacturing overhead $5,000,000 Variable S&A Commission on Sales Fixed S&A $200,000 The company has had a policy of having zero inventories at the end of each quarter. No further sales are possible during the year and all the units produced so far have been sold. The CEO is planning to produce items for inventory in the last week of December to meet the net operating income target How many units (nearest whole number) need to be additionally produced for inventory in the last week of December to meet the net operating income target if the sales commission is left unchanged at 3? O 50,000 5.556 O 3191 55 556

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