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?