1) Kent Company makes an in-car navigation system. Next year, Kent plans to Sell 16,000 units at a price of $320 each. Product costs include: Direct materials $68 Direct labour $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. Calculate the contribution margin per unit. (2 Marks)

2. How many units must Kent Company sell to break even? Prepare an income statement for the calculated number of units. (5 Marks)

3. Calculate the number of units Kent Company must sell to achieve target operating income (profit) of $333,408. (2 Marks