Break-Even Units: Units for Target Profit Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 16,000 units at a price of $320 each. Product costs include Direct materials $68 Direct labor $40 Variable overhead $12 Total fixed factory overhead $500,000 Variable selling expense is a commission of 5 percent of price; fixed selling and administrative expenses total $116,400. Required: 1. Calculate the sales commission per unit sold. per unit Calculate the contribution margin per unit. per unit 2. How many units must Jay-Zee Company sell to break even? units Prepare an income statement for the calculated number of units. If an amount is zero, enter "0".
Break-Even Units: Units for Target Profit Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 16,000 units at a price of $320 each. Product costs include Direct materials $68 Direct labor $40 Variable overhead $12 Total fixed factory overhead $500,000 Variable selling expense is a commission of 5 percent of price; fixed selling and administrative expenses total $116,400. Required: 1. Calculate the sales commission per unit sold. per unit Calculate the contribution margin per unit. per unit 2. How many units must Jay-Zee Company sell to break even? units Prepare an income statement for the calculated number of units. If an amount is zero, enter "0".
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2CE
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