PROBLEM DATA Poleski Manufacturing, which maintains the same level of inventory at the end of each year, provided the following information about expenses anticipated for next year Fixed Expenses Variable Expenses (per unit sold) Production costs: $ 2.30 Direct materials Direct labor Factory overhead 3.00 Selling expenses: 75 Sales salaries and commissions Advertising Miscellaneous selling expense 97,000 47,500 16,200 General expenses Office salaries Supplies Miscellaneous general expense 92,000 12,300 15,000 25 $11.00 The selling price of Poleski's single product is $16. In recent years, profits have fallen and Polesk's management is now considering a number of alternatives. Poleski wants to have a net income next year of $250,000, but expects to sell only 120,000 units unless some changes are made 105