Homework Help is Here – Start Your Trial Now!
Business
Accounting
contribution margin per unit.

contribution margin per unit.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

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 $380 each. Product costs include:

Direct materials $80.00
Direct labor $46.00
Variable overhead $11.00
Total fixed factory overhead $705,800

Variable selling expense is a commission of 6 percent of price; fixed selling and administrative expenses total $86,200.

Required:

 

1. Calculate the sales commission per unit sold. If required, round your answers to the nearest dollar. Use rounded answers in subsequent computations. $23 ✓ per unit Calculate the contribution margin per unit. $220 ✓ per unit 2. How many units must Jay-Zee Company sell to break even? Round your answer to the nearest whole number. 3,600 ✓ units --- Feedback Prepare an income statement for the calculated number of units. If an amount is zero, enter "0". Do NOT round Break-even units and, if required, round your answer to the nearest dollar. **Jay-Zee Company Income Statement** - **Sales** - _____________$ - **Less: Variable expenses** ✓ - _____________$ - **Contribution margin** ✓ - _____________$ - **Less: Fixed expenses** ✓ - _____________$ - **Operating income** ✓ - _____________$
Transcribed Image Text:1. Calculate the sales commission per unit sold. If required, round your answers to the nearest dollar. Use rounded answers in subsequent computations. $23 ✓ per unit Calculate the contribution margin per unit. $220 ✓ per unit 2. How many units must Jay-Zee Company sell to break even? Round your answer to the nearest whole number. 3,600 ✓ units --- Feedback Prepare an income statement for the calculated number of units. If an amount is zero, enter "0". Do NOT round Break-even units and, if required, round your answer to the nearest dollar. **Jay-Zee Company Income Statement** - **Sales** - _____________$ - **Less: Variable expenses** ✓ - _____________$ - **Contribution margin** ✓ - _____________$ - **Less: Fixed expenses** ✓ - _____________$ - **Operating income** ✓ - _____________$
Expert Solution
steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost classification
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS