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Wilson Carla Vista is a leading producer of vinyl replacement windows. The company's growth strategy focuses on developing domestic markets in large metropolitan areas. The

Wilson Carla Vista is a leading producer of vinyl replacement windows. The company's growth strategy focuses on developing
domestic markets in large metropolitan areas. The company operates a single manufacturing plant in Kansas City with an annual
capacity of 500,000 windows. Current production is budgeted at 450,000 windows per year, a quantity that has been constant over
the past three years. Based on the budget, the accounting department has calculated the following unit costs for the windows:
The company's budget includes $5,400,000 in fixed overhead and $3,150,000 in fixed selling and administrative expenses. The
windows sell for $150.00 each. A 2% distributor's commission is included in the selling and administrative expenses.
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