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. 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.
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.

Jay-Zee Company

1. Sales commission per unit sold is:

= $16.

The Contribution margin per unit is:

= $184.

2. Break-even units are:

= 3,350 units

Income Statement for 3,350 units:

Sales revenue                  $1,072,000 ($320 * 3,350)

Variable cost of goods sold 455,600 ($136 * 3,350)

Contribution margin           $616,400 ($184 * 3,350)

Fixed costs:

Factory overhead              $500,000

Selling and administrative     116,400

Total fixed costs                 $616,400

Net operating income        $0

3. Units to sell to achieve income of $333,408 are:

= 5,162 units

4. The number of units needed would decrease.

The number of units needed for the new target operating income is:

= 5,100 units.

Explanation:

a) Data and Calculations:

Planned sales unit for the next year = 16,000

Sales price per unit = $320

Product costs:

Direct materials      $68

Direct labor             $40

Variable overhead  $12

Total fixed factory overhead $500,000

Variable selling expense = $16 ($320 * 5%)

Fixed selling and administrative expenses = $116,400

Total variable costs per unit = $136

Contribution margin per unit = $184 ($320 - $136)

Total fixed costs = $616,400 ($500,000 + $116,400)

To break-even, units to sell = $616,400/$184 = 3,350 units

Units to sell to achieve a profit target of $333,408:

= $616,400+ $333,408/$184

= 5,162 units

Units to sell to achieve a profit target of $333,408:

= $616,400+ $322,000/$184

= 5,100 units

answernaturalistic observation;

among other factors, composers started writing dynamic markings in their scores because "new instruments allowed for more dynamic ranges and contrast."

dynamics allude to the loudness or softness of music. dynamics offer an approach to demonstrate articulation in sheet music. they to drive the enthusiastic substance of music through volume and force. maybe you could alter both the volume and the shading profundity on your screen at the same time. we can likewise think about the force side of elements as the quality of a note. a few notes are intended to be played delicately and gently, while others are intended to be played all the more firmly.  

some dynamics markings have a letter 'm,' which remains for mezzo, signifying 'medium.' so a mezzo piano unique stamping resembles this (mp) and intends to play medium calm, while a mezzo specialty dynamic resembles this (mf) and intends to play medium loud.