Hewtex Electronics manufactures two products, tape recorders and electronic calculators, and sells them nationally to wholesalers and retailers. The Hewtex management is very pleased with the company's performance for the current fiscal year. Projected sales through December 31, 2022, suggest that 120,000 tape recorders and 190,000 electronic calculators will be sold this year. The projected earnings statement, which follows, shows that Hewtex will not meet its earnings goal of 9% of sales after taxes. HEWTEX ELECTRONICS Projected Earnings Statement For the Year Ended December 31, 2022 120,000 UNITS 190,000 UNITS TAPE ELECTRONIC TOTAL RECORDERS CALCULATOR Per Unit Total Amount Per (000 (000 omitted) Unit omitted) Sales $1,800 $15.00 $5,320 $28.00 $7,120 Flexible costs Materials 480 4.00 1,140 6.00 1,620 Labour 360 3.00 1,710 9.00 2,070 Other 120 1.00 570 3.00 690 Committed costs. 280 2.33 1,400 7.37 1,680 Total costs 1,240 10.33 4,820 25.37 6,060 Gross Margin 560 4.67 500 2.63 1,060 Facility-sustaining costs 2,000 Net income before income (940) taxes Determine the volume of sales required if Hewtex Electronics is to earn a profit in 2023 equal to 9% of sales after tax? Hewtex faces a tax rate of 42%. Hewtex now allocates committed costs based on flexible labour costs. A study has determined that committed costs are as follows: (1) supervisory costs for tape recorder production - $500,000; (2) supervisory salaries for electronic calculator production $600,000; (3) the balance of the committed costs are proportional to the number of batches of production. Hewtex schedules tape recorders for production in batches of 1,000; and electronic calculators in batches of 10,000. Finally, $300,000 of what was originally classified as facilitysustaining cost was actually attributable to tape recorders, and $400,000 was attributable to the electronic calculator line. Recast the original financial statements to correct the costing errors due to misclassification. Total Amount (000 omitted) Hewtex Electronics manufactures two products, tape recorders and electronic calculators, and sells them nationally to wholesalers and retailers. The Hewtex management is very pleased with the company's performance for the current fiscal year. Projected sales through December 31, 2022, suggest that 120,000 tape recorders and 190,000 electronic calculators will be sold this year. The projected earnings statement, which follows, shows that Hewtex will not meet its earnings goal of 9% of sales after taxes. HEWTEX ELECTRONICS Projected Earnings Statement For the Year Ended December 31, 2022 120,000 UNITS 190,000 UNITS TAPE ELECTRONIC TOTAL RECORDERS CALCULATOR Per Unit Total Amount Per (000 (000 omitted) Unit omitted) Sales $1,800 $15.00 $5,320 $28.00 $7,120 Flexible costs Materials 480 4.00 1,140 6.00 1,620 Labour 360 3.00 1,710 9.00 2,070 Other 120 1.00 570 3.00 690 Committed costs. 280 2.33 1,400 7.37 1,680 Total costs 1,240 10.33 4,820 25.37 6,060 Gross Margin 560 4.67 500 2.63 1,060 Facility-sustaining costs 2,000 Net income before income (940) taxes Determine the volume of sales required if Hewtex Electronics is to earn a profit in 2023 equal to 9% of sales after tax? Hewtex faces a tax rate of 42%. Hewtex now allocates committed costs based on flexible labour costs. A study has determined that committed costs are as follows: (1) supervisory costs for tape recorder production - $500,000; (2) supervisory salaries for electronic calculator production $600,000; (3) the balance of the committed costs are proportional to the number of batches of production. Hewtex schedules tape recorders for production in batches of 1,000; and electronic calculators in batches of 10,000. Finally, $300,000 of what was originally classified as facilitysustaining cost was actually attributable to tape recorders, and $400,000 was attributable to the electronic calculator line. Recast the original financial statements to correct the costing errors due to misclassification. Total Amount (000 omitted)