Break Even Units Units for Target Profit Jay Zee Company makes an in car navigation system Next year, Jay Zee plans to sell 15,000 units at a price of $330 each Product costs include Direct materials $69 00 Direct labor $40 00 Variable overhead $10 00 Total fixed factory overhead $655,650 Variable selling expense is a commission of 3 percent of price fixed selling and administrative expenses total $118,200 Required 1 Calculate the sales commission per unit sold If required, round your answers to the nearest dollar Use rounded answers in subsequent computations unit a 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 Contribution margin Fixed expenses Sales Variable expenses $ Less Contribution margin Less Fixed expenses Less Sales Less Variable expenses Contribution margin Fixed expenses Sales Variable expenses $ Less Contribution margin Less Fixed expenses Less Sales Less Variable expenses Contribution margin Fixed expenses Operating income Operating loss 3 Calculate the number of units Jay Zee Company must sell to achieve target operating income (profit) of $364,212 Round your answer to the nearest whole number units 4 What if the Jay Zee Company wanted to achieve a target operating income of $351,750 Would the number of units needed increase or decrease compared to your answer in Requirement 3 Round your answer to the nearest whole number Increase or Decrease 5 Compute the number of units needed for the new target operating income units

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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 15,000 units at a price of

Break-Even Units: Units for Target Profit

Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 15,000 units at a price of $330 each. Product costs include:

Direct materials	$69.00
Direct labor	$40.00
Variable overhead	$10.00
Total fixed factory overhead	$655,650

Variable selling expense is a commission of 3 percent of price; fixed selling and administrative expenses total $118,200.

Required:

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

a. 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**
Contribution margin/Fixed expenses/Sales/Variable expenses	$___
Less: Contribution margin/Less: Fixed expenses/Less: Sales/Less: Variable expenses	____
Contribution margin/Fixed expenses/Sales/Variable expenses	$____
Less: Contribution margin/Less: Fixed expenses/Less: Sales/Less: Variable expenses	____
Contribution margin/Fixed expenses/Operating income/Operating loss	_____

3. Calculate the number of units Jay-Zee Company must sell to achieve target operating income (profit) of $364,212. Round your answer to the nearest whole number. ____ units

4. What if the Jay-Zee Company wanted to achieve a target operating income of $351,750? Would the number of units needed increase or decrease compared to your answer in Requirement 3? Round your answer to the nearest whole number.

Increase or Decrease

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