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HUNTER ELECTRONICS CASE PROBLEM: While the board of directors did not oppose the budget, they made it clear that the budget was not as ambitious as they had hoped. The most influential member of the board stated that “managers should have to really stretch to meet profit goals.” After some discussion the board decided to set a profit goal of $4,800,000 for the coming year. To provide strong incentives and a win-win situation, the board agreed to pay out bonuses to top managers of $200,000 if this profit goal was met. Michael’s share of the bonus pool would be $50,000. The bonus would be all or nothing. If actual net operating income turned out to be $4,800,000 or more, the bonus would be paid. Otherwise, no bonus would be allowed. 1. Assuming that the company does not build up its inventory (i.e. production equals sales) and its selling price and cost structure remain the same, how many units of the CD-ROM drives would have to be sold to meet the target net operating income of $4,800,000? ANSWER: 210,000 CD-ROM drives would have to be sold to meet the target net operating income of $4,800,000 2. Verify your answer to this by constructing a revised budget and budgeted income statement that yields a net operating