What is the current breakeven point in number of units

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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?

Reference no: EM132769638

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