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Break - Even Units: Units for Target Profit Jay - Zee Company makes an in - car navigation system. Next year, Jay - Zee plans
BreakEven Units: Units for Target Profit
JayZee Company makes an incar navigation system. Next year, JayZee plans to sell units at a price of $ each. Product costs include:
Direct materials $
Direct labor $
Variable overhead $
Total fixed factory overhead $
Variable selling expense is a commission of percent of price; fixed selling and administrative expenses total $
Required:
Calculate the sales commission per unit sold. If required, round your answers to the nearest dollar. Use rounded answers in subsequent computations.
per unit
Calculate the contribution margin per unit.
per unit
How many units must JayZee Company sell to break even? Round your answer to the nearest whole number.
units
Prepare an income statement for the calculated number of units. If an amount is zero, enter Do NOT round Breakeven units and, if required, round your answer to the nearest dollar.
JayZee Company
Income Statement
$ Select
Select
$ Select
Select
$ Select
Calculate the number of units JayZee Company must sell to achieve target operating income profit of $ Round your answer to the nearest whole number.
units
What if the JayZee Company wanted to achieve a target operating income of $ Would the number of units needed increase or decrease compared to your answer in Requirement Round your answer to the nearest whole number.
Compute the number of units needed for the new target operating income.
units
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