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contribution margin per unit.

contribution margin per unit.

Cornerstones of Cost Management (Cornerstones Series)
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
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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 v per unit Calculate the contribution margin per unit. 220 v per unit 2. How many units must Jay-Zee Company sell to break even? Round your answer to the nearest whole number. 3,600 v 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 v per unit Calculate the contribution margin per unit. 220 v per unit 2. How many units must Jay-Zee Company sell to break even? Round your answer to the nearest whole number. 3,600 v 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
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