A hardware store expects monthly sales of $176,450, markdowns equaling 3% of sales, and employee discounts equaling 2.5% of sales. Calculate the hardware store's planned reductions if it also expects $550 in shortages.

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A hardware store expects monthly sales of $176,450, markdowns equaling 3% of sales, and employee discounts equaling 2.5% of sales. Calculate the hardware store's planned reductions if it also expects $550 in shortages.