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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
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 $320 each. Product costs include: Direct materials Direct labor Variable overhead Total fixed factory overhead $67.00 $38.00 $10.00 $632,100 Variable selling expense is a commission of 6 percent of price; fixed selling and administrative expenses total $102,600. Required: 1. Calculate the sales commission per unit sold. If required, round your answers to the nearest dollar. Use rounded answers in subsequent computations. 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
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