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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 to sell 20,000 units at a price of

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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 to sell 20,000 units at a price of $350 each. Product costs include: Direct materials $74.00 Direct labor $42.00 Variable overhead $11.00 Total fixed factory overhead $704,950 Variable selling expense is a commission of 5 percent of price; fixed selling and administrative expenses total $104,800. Required: 1. Calculate the sales commission per unit sold. If required, round your answers to the nearest dollar Use rounded answers in subsequent computatio per unit Calculate the contribution margin per unit. per unit 2. How many units must Jay-Zee 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 "0". Do NOT round Break-even units and, if required, round your answer to the nearest dollar Jay-Zee Company Income Statement Sales Less: Variable expenses Contribution margin Less Fixed expenses Operating Income JOJO Remember to use a contribution margins format income statement. You won't find gross profit on this type of income statement 3. Calculate the number of units w-Zee Company must wel to achieve target operating income (pront) of $371,460 Round your answer to the nearest whole number. units 4. What if the Jay Zee Company wanted to achieve a target operating income of us.750? Would the number of units needed increase or decree compared to your answer rent 3 Round your awer to the new whole number Decrease Compute the number of units needed for the wrong income unit

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