1.HDV Company manufactures video filming equipment.HDV's most popular product, the HDV52 sells for $1,400 per unit.Costs per...
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1.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 labor350 / unit
Variable manufacturing overhead140 / unit
Fixed manufacturing overhead$ 200,000
Variable marketing50 / unit
Administrative salaries$ 42,000
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?
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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