Break-even Units: Units for Target Profit Jay-Zee Company makes an in-car navigation system. Next year,...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Break-even Units: Units for Target Profit Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 16,000 units at a price of $320 each. Product costs include: Direct materials $68 Direct labor $40 Variable overhead $12 Total fixed factory overhead. $500,000 Variable selling expense is a commission of 5 percent of price; fixed selling and administrative expenses total $116,400 Required: 1. Calculate the sales commission per unit sold. per unit Calculate the contribution margin per unit per unit 2. How many units must Jay Zee Company sell to break even? units Prepare an income statement for the calculated number of units. If an amount is zero, enter *o". Jay Zee Company Income Statement 3. Calculate the number of units Jay-Zee Company must sell to achieve target operating income (profit) of $333,408. units 4. What if the Jay-Zee Company wanted to achieve a target operating income of $322,000? Would the number of units needed increase or decrease compared to your answer in Requirement 3? Compute the number of units needed for the new target operating Income units
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
