Question
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
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 $543,900 Variable selling expense is a commission of 4 percent of price; fixed selling and administrative expenses total $119,400. Required: Question Content Area 1. Calculate the sales commission per unit sold. If required, round your answers to the nearest dollar. Use rounded answers in subsequent computations. $fill in the blank 88aa7403f05f021_1 13 per unit Calculate the contribution margin per unit. $fill in the blank 88aa7403f05f021_2 198 per unit 2. How many units must Jay-Zee Company sell to break even? Round your answer to the nearest whole number. fill in the blank 88aa7403f05f021_3 3,350 units Feedback Area Feedback Question Content Area 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 $Sales 1,105,500 Less: Variable expenses Less: Variable expenses 442,200 Contribution margin $Contribution margin 663,300 Less: Fixed expenses Less: Fixed expenses 663,300 Operating income $Operating income 0 Feedback Area Feedback Question Content Area 3. Calculate the number of units Jay-Zee Company must sell to achieve target operating income (profit) of $358,776. Round your answer to the nearest whole number. fill in the blank 4354d008d033ffe_1 5,162 units 4. What if the Jay-Zee Company wanted to achieve a target operating income of $346,500? Would the number of units needed increase or decrease compared to your answer in Requirement 3? Round your answer to the nearest whole number. Decrease Compute the number of units needed for the new target operating income. fill in the blank 4354d008d033ffe_3 units
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started