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aliina [53]
3 years ago
10

Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 20,000 units at a price of $340 each. Produc

t costs include: Direct materials $71.00 Direct labor $41.00 Variable overhead $10.00 Total fixed factory overhead $619,950 Variable selling expense is a commission of 5 percent of price; fixed selling and administrative expenses total $93,600.

Business
1 answer:
enyata [817]3 years ago
7 0
<h2>1.<u>Calculation of contribution margin per unit:</u></h2>

Margin per unit= Selling price per unit - Variable cost

= (340)- ( 71+41+10+17)

= 340-139

=$201

<h2><u>2. Calculation of break even units</u></h2>

Break even = fixed cost/ Contribution by margin

= ( 619950+93600)/ 201

=3550 units

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