4. What if the Jay-Zee Company wanted to achieve a target operating income of $322,000? Would the number of units needed increase or decrease compared to your answer in Requirement 37 Compute the number of units needed for the new target operating income. units

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Jay-Zee Company part 4

Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 16,000 units at a price of $320 each. Product costs include:
Direct materials
$68
Direct labor
$40
Variable overhead
$12
Total fixed factory overhead
$500,000
Variable selling expense is a commission of 5 percent of price; fixed selling and administrative expenses total $116,400.
Transcribed Image Text:Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 16,000 units at a price of $320 each. Product costs include: Direct materials $68 Direct labor $40 Variable overhead $12 Total fixed factory overhead $500,000 Variable selling expense is a commission of 5 percent of price; fixed selling and administrative expenses total $116,400.
4. What if the Jay-Zee Company wanted to achieve a target operating income of $322,000? Would the number of units needed increase or decrease
compared to your answer in Requirement 3?
Compute the number of units needed for the new target operating income.
units
Transcribed Image Text:4. What if the Jay-Zee Company wanted to achieve a target operating income of $322,000? Would the number of units needed increase or decrease compared to your answer in Requirement 3? Compute the number of units needed for the new target operating income. units
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