1. How many units would have to be sold to yield a target operating income of $22,000, assuming variable costs are $15 per unit, total fixed costs are $2,000, and the unit selling price is $20.00?

_____________units

2. Prepare journal entry to recognize the use of direct materials of $55,000 and indirect materials of $5,000.

_________________________________________________________DR____________CR____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

3. When fixed costs are $100,000 and variable costs are 20% of the selling price, then breakeven sales are:

$________________BE Sales

4. Video Corp. manufactures digital video equipment. For each unit $1,475 of direct materials is used and there is $1,500 of direct manufacturing labor at $30 per hour. Manufacturing overhead is applied (allocated) at $35 per direct manufacturing labor hour. Calculate the manufacturing cost of each unit.

$______________per unit