Value 238 points Scholes Systems supplies a particular type of office chair to large retailers such as Target Costco, and Office Max. Scholes is concerned about the possible effects of inflation on its operations. Presently, the company sells 83,000 units for $60 per unit. The variable production costs are $30, and fixed costs amount to $1.430,000. Production engineers have advised management that they expect unit costs to rise by 20 percent and unit materials costs to rise by 10 percent in the coming year. Of the $30 variable costs, 50 percent are from labor and 30 percent are from materials. Variable overhead costs are expected to increase by 25 percent. Sales prices cannot increase more than 10 percent. It is also expected that fixed costs will rise by 5 percent as a result of increased taxes and other miscellaneous fixed charges. The company wishes to maintain the same level of profit in real dollar terms. It is expected that to accomplish this objective, profits must increase by 8 percent during the year