Chapter 16, Problem 2CE

1.

To determine

Compute the sales commission per unit sold and the contribution margin per unit.

2.

To determine

Compute the break-even point and draw up the contribution margin based on the break-even point for Company JZ.

3.

To determine

Compute the number of units to be sold to generate an operating income of $333,408 by Company JZ.

4.

To determine

Compute the number of units to be sold to generate an operating income of $322,00 by Company JZ and compare with the number of units computed in Requirement 3.