Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 24,000 units at a price of $340 each. Product costs include:

Direct materials	$71.00
Direct labor	$41.00
Variable overhead	$10.00
Total fixed factory overhead	$500,200

Variable selling expense is a commission of 6 percent of price; fixed selling and administrative expenses total $113,600.

Required:

1. Calculate the sales commission per unit sold. If required, round your answers to the nearest dollar. Use rounded answers in subsequent computations.
$fill in the blank a8da52f9ef8d047_1 per unit

Calculate the contribution margin per unit.
$fill in the blank a8da52f9ef8d047_2 per unit

2. How many units must Jay-Zee Company sell to break even? Round your answer to the nearest whole number.
fill in the blank a8da52f9ef8d047_3 units

Prepare an income statement for the calculated number of units. If an amount is zero, enter "0". Do NOT round Break-even units and, if required, round your answer to the nearest dollar.

Jay-Zee Company
Income Statement
	$fill in the blank 28dceefe9002051_2
	fill in the blank 28dceefe9002051_4
	$fill in the blank 28dceefe9002051_6
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	$fill in the blank 28dceefe9002051_10

3. Calculate the number of units Jay-Zee Company must sell to achieve target operating income (profit) of $358,776. Round your answer to the nearest whole number. fill in the blank b89c58fb9078ff0_1 units

4. What if the Jay-Zee Company wanted to achieve a target operating income of $346,500? Would the number of units needed increase or decrease compared to your answer in Requirement 3? Round your answer to the nearest whole number.

Compute the number of units needed for the new target operating income.

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Answer rating: 100% (QA)

Per unit Direct materials 74 Direct labor 42 Vari... View the full answer