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. 2'022 120,0UG UNITS 190,0[Il UNITS TAPE RECORDERS ELECTRONIC CALCULATOR TOTAL Total Amount Per Unit Total Amount Per Unit (D 000 omitted omitted Sales Flexible costs Materials Labour Other Committed costs Total costs Gross Margin Facilitysustaining costs Net income before income taxes