Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 19,000 units at a price of $340 each. Product costs include: Direct materials $71.00 Direct labor $41.00 Variable overhead $10.00 Total fixed factory overhead $584,800 Variable selling expense is a commission of 4 percent of price; fixed selling and administrative expenses total $98,600.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.
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. 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.
Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 19,000 units at a price of $340 each. Product costs include:
Direct materials
$71.00
Direct labor
$41.00
Variable overhead
$10.00
Total fixed factory overhead
$584,800
Variable selling expense is a commission of 4 percent of price; fixed selling and administrative expenses total $98,600.
Transcribed Image Text:Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 19,000 units at a price of $340 each. Product costs include: Direct materials $71.00 Direct labor $41.00 Variable overhead $10.00 Total fixed factory overhead $584,800 Variable selling expense is a commission of 4 percent of price; fixed selling and administrative expenses total $98,600.
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