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\mathrm{.}00$ each. A $2\%$ distributor's commission is included in the selling and administrative expenses.