Young Incorporated has experienced both profitability and inventory buildup that has resulted in short$-$term liquidity problems. As a result, Young has hired you an expert business analyst to help them. The table below is for $2023,$ a typical year for Young. Young employs an experienced management team whose compensation consists of salaries, and bonuses based on net income $($GAAP based$).$

Beginning Inventory in units $200$

Price $$550\mathrm{.}00$

Sold $450$

Actual production $500$

budgeted production $500$

Unit Variable Costs

Manufacturing $$125\mathrm{.}00$

Selling and Administrative $$75\mathrm{.}00$

Fixed Costs

Manufacturing $$100,000$

Selling and Administrative $$25,000$

Required:

a$)$ Can you help Young? What do you recommend? You must support your answer.