Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 17,000 units at a price of $360 each. Product costs include:Direct materials$76.00Direct labor$43.00Variable overhead$11.00Total fixed factory overhead$727,000Variable selling expense is a commission of 5 percent of price; fixed selling and administrative expenses total $110,400.See screenshots for needed answers. **Break-Even Units: Units for Target Profit**Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 17,000 units at a price of $360 each. Product costs include:- Direct materials: $76.00- Direct labor: $43.00- Variable overhead: $11.00- Total fixed factory overhead: $727,000Variable selling expense is a commission of 5 percent of price; fixed selling and administrative expenses total $110,400.**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 unit2. **How many units must Jay-Zee Company sell to break even?** Round your answer to the nearest whole number. - ______ unitsPrepare 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**- Net Sales: $ ______- Variable Costs: $ ______- Contribution Margin: $ ______- Fixed Costs: $ ______- Net Income: $ ______ **Break-Even and Target Operating Income Analysis: Jay-Zee Company**2. **Break-Even Analysis** - **Question**: How many units must Jay-Zee Company sell to break even? Round your answer to the nearest whole number. - **Answer Box**: [Blank field for units] - **Instructions**: 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 (Template)** - Sales: $ [Blank field] - Variable expenses: $ [Blank field] - Contribution margin: $ [Blank field] - Fixed expenses: $ [Blank field] - Net operating income: $ [Blank field]3. **Target Operating Income Calculation** - **Question**: Calculate the number of units Jay-Zee Company must sell to achieve a target operating income (profit) of $384,144. Round your answer to the nearest whole number. - **Answer Box**: [Blank field for units]4. **What-If Analysis** - **Scenario**: If the Jay-Zee Company wanted to achieve a target operating income of $371,000, would the number of units needed increase or decrease compared to your answer in Requirement 3? Round your answer to the nearest whole number. - **Answer Box for units**: [Blank field] - **Instructions**: Compute the number of units needed for the new target operating income.

Calculation of Sales commission per unit Sales commission per unit = Selling price per unit X…

ay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 17,000 units at a price of $360 each. Product costs include: Direct materials $76.00 Direct labor $43.00 Variable overhead $11.00 Total fixed factory overhead $727,000 Variable selling expense is a commission of 5 percent of price; fixed selling and administrative expenses total $110,400.

ay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 17,000 units at a price of $360 each. Product costs include: Direct materials $76.00 Direct labor $43.00 Variable overhead $11.00 Total fixed factory overhead $727,000 Variable selling expense is a commission of 5 percent of price; fixed selling and administrative expenses total $110,400.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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