HDV Company manufactures video filming equipment. HDV's most popular product, the HDV52 sells for $1,400 per...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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: $ 420 / unit 350/unit Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Variable marketing Administrative salaries 140 / unit $ 200,000 50 / unit $ 42,000 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 20% tax rate, how many units must be sold to generate Net Income of $26,400? 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: $ 420 / unit 350/unit Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Variable marketing Administrative salaries 140 / unit $ 200,000 50 / unit $ 42,000 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 20% tax rate, how many units must be sold to generate Net Income of $26,400?
Expert Answer:
Answer rating: 100% (QA)
Requirement a Breakeven point Fixed costs Contribution margin per unit Breakeven point 242000 440 ... View the full answer
Posted Date:
Students also viewed these finance questions
-
The sales needed to earn a target operating income moves managers away from a point of zero profit, toward one of a particular positive profit. Managers find it easy to use actual sales at any point...
-
Direct materials and manufacturing labor variances, solving unknowns (CPA, adapted) On May 1, 2009, Bovar Company began the manufacture of a new paging machine known as Dandy. The company installed a...
-
Direct materials and manufacturing labor variances, journal entries, Shaynas Smart Shawls Inc. is a small business that Shayna developed while in college. She began hand-knitting shawls for her dorm...
-
0 3 S 25 cos(x) sin (x) dx -T3
-
In the article Statistical Fallacies in Sports (Chance, Vol. 19, No. 4, pp. 5056), S. Berry discussed, among other things, the relation between scores for the first and second rounds of the 2006...
-
Purex produces three different types of detergents: Breeze, Fresh, and Joy. The company uses four operations to manufacture the detergents: spray drying, mixing, blending, and packaging. Breeze and...
-
What are the advantages of using the Internet to conduct preliminary job interviews? What problems is a company that uses computer-aided interviewing likely to encounter?
-
The balance sheet of Kishwaukee Corporation as of December 31, 2014, is as follows. Note 1: Buildings are stated at cost, except for one building that was recorded at appraised value. The excess of...
-
Given a sorted array 2, 5, 8, 12, 16, 18, 22, 25, 29, 32 and the following interpolation search algorithm. Show the steps of the algorithm when 25 is searched. Also, when 26 is searched. array a,...
-
Jim wants to buy a new motorcycle but he isn't sure he can afford it. He salary is $6,000 per month, gross, which is great for someone who just graduated from college. His monthly paycheck...
-
What labor standards regarding safety, working conditions, overtime and the like should companies hold foreign factories to' those prevailing in that country or united states? Is there a rule that...
-
Consider the following open loop frequency response of a unity feedback system. The gain and phase margin of the system are respectively (a) \(0.00 \mathrm{~dB},-180^{\circ}\) (b) \(3.86...
-
Consider the following statements for a counter clockwise Nyquist path. 1. For a stable closed loop system, the Nyquist plot of \(\mathrm{G}(s) \mathrm{H}(s)\) should encircle \((-1, j 0)\) point as...
-
The open loop transfer function of a unity feedback control system is given as \(\mathrm{G}(s)=\frac{a s+1}{s^{2}}\). The value of ' \(a\) ' to give a phase margin of \(45^{\circ}\) is equal to (a)...
-
The asymptotic Bode plot of the transfer function \(\frac{\mathrm{K}}{1+\frac{s}{a}}\) is given in figure. The error in phase angle and \(\mathrm{dB}\) gain at a frequency of \(\omega=0.5 a\) are...
-
If the Nyquist plot cuts the negative real axis at a distance of 0.4, then the gain margin of the system is (a) 0.4 (b) -0.4 (c) 4 (d) 2.5
-
Consider the state-space model x+
-
U.S. households have become smaller over the years. The following table from the 2010 GSS contains information on the number of people currently aged 18 years or older living in a respondent's...
-
How does each of the characteristic features of a public health approach described in this chapter distinguish it from other fields, or not?
-
At the turn of the 20th century, an Indiana physician named George Eddingfield repeatedly refused to come to the aid of Charlotte Burk, who was in labor, even though he was Mrs. Burks family...
-
Explain generally how the U.S. approach to health rights differs from that of other high-income countries?
Study smarter with the SolutionInn App