Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee - 15958

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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:

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.

Calculate the contribution margin per unit.

2. How many units must Jay-Zee Company sell to break even?

 Prepare an income statement for the calculated number of units. If an amount is zero, enter "0".

3. Calculate the number of units Jay-Zee Company must sell to achieve target operating income (profit) of \$333,408.

4. What if the Jay-Zee Company wanted to achieve a target operating income of \$322,000? Would the number of units needed increase or decrease compared to your answer in Requirement 3?

Compute the number of units needed for the new target operating income.

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