Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 17,000 units at a price of $390 each. Product costs include: Direct materials $82.00 Direct labor $47.00 Variable overhead $12.00 Total fixed factory overhead $647,250 Variable selling expense is a commission of 5 percent of price; fixed selling and administrative expenses total $97,000. 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. $________ per unit Calculate the contribution margin per unit. $________ per unit 2. How many units must Jay-Zee Company sell to break even? Round your answer to the nearest whole number. ________units 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. blank Sales $______ Less: Variable expenses _______ Contribution margin $______ Less: Fixed expenses ______ Operating income $______ 3. Calculate the number of units Jay-Zee Company must sell to achieve target operating income (profit) of $414,948. Round your answer to the nearest whole number. _______units
Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 17,000 units at a price of $390 each. Product costs include:
| Direct materials | $82.00 |
| Direct labor | $47.00 |
| Variable |
$12.00 |
| Total fixed factory overhead | $647,250 |
Variable selling expense is a commission of 5 percent of price; fixed selling and administrative expenses total $97,000.
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.
$________ per unit
Calculate the contribution margin per unit.
$________ per unit
2. How many units must Jay-Zee Company sell to break even? Round your answer to the nearest whole number. ________units
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.
| Sales | $______ |
| Less: Variable expenses | _______ |
| Contribution margin | $______ |
| Less: Fixed expenses | ______ |
| Operating income | $______ |
3. Calculate the number of units Jay-Zee Company must sell to achieve target operating income (profit) of $414,948. Round your answer to the nearest whole number.
_______units
4. What if the Jay-Zee Company wanted to achieve a target operating income of $400,750? Would the number of units needed increase or decrease compared to your answer in Requirement 3? Round your answer to the nearest whole number.
Compute the number of units needed for the new target operating income. ______units
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