Reference no: EM132769638
Question - HDV Company manufactures video filming equipment. HDV's most popular product, the HDV52 sells for $1,400 per unit. Costs per unit associated with the HDV52 are as follows:
Direct materials $420/unit
Direct manufacturing labor 350/unit
Variable manufacturing overhead 140/unit
Fixed manufacturing overhead $200,000
Variable marketing 50/unit
Administrative salaries $42,000
Required -
a. What is the current breakeven point in number of units?
b. Calculate the amount of Sales needed to earn the target operating income of $22,000?
c. If HDV Co. pays taxes at a 30% tax rate, how many units must be sold to generate Net Income of $24,640?