Question
n Year 1, Jay Company expects to sell 2,243 units at $110 per unit. Sales are expected to increase 25% each year for years 2-4.
n Year 1, Jay Company expects to sell 2,243 units at $110 per unit. Sales are expected to increase 25% each year for years 2-4. The unit sales price will remain the same. Labor is 23% of sales, Overhead 10%, Materials 5%, and Variable Sales and Admin, 4%. Fixed Costs, are Factory Overhead (2%) and Sales and Admin (4%). Interest expense of $425 is evenly budgeted over the period. The company tax rate is 20%. If sales remain at the budgeted 4 year level but fixed cost increase to 367800 and the company wants to achieve target net income of 700000 recalculatle the cm ratio, unit cm, break even in units, breakeven in dollars, and target breakeven in units
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