Reference no: EM132344451

Question

1. Ocean City Kite Company sells kites for $8.50 per kite. In FY 2019, total fixed costs are expected to be $210,000 and variable costs are estimated at $4.00 a unit. Ocean City Kite Company wants to have a FY 2019 operating income of $75,000. Use this information to determine the number of units of kites that Ocean City Kite Company must sell in FY 2019 to meet this goal. (Round your answer to a whole number)

2.The following totals are used to create the CVP Income Statement for Frederick Company for FY2018:

Frederick Company

Selected Financial Figures

For the Year Ended 12/31/18

Sales (100 units) $10,000

Variable Costs:

Direct Labor $1,650

Direct Materials 1,200

Factory Overhead (variable) 2,000

Selling Expenses (variable) 600

Administrative Expenses (variable) 500

Fixed Costs:

Factory Overhead (fixed) $700

Selling Expenses (fixed) 1,000

Administrative Expenses (fixed) 1,000

Frederick Company utilizes a JIT production system and there are no Raw Materials, Work-in-Process or Finished Goods inventories. Use this information to determine FY 2018 Contribution Margin Percentage. Enter percentage to one decimal place. (example enter 35.5% as 35.5)

3.The following totals are used to create a CVP Income Statement for Frederick Company for FY2018:

Frederick Company

Selected Financial Figures

For the Year Ended 12/31/18

Sales (100 units) $10,000

Variable Costs:

Direct Labor $2,000

Direct Materials 2,000

Factory Overhead (variable) 2,000

Selling Expenses (variable) 600

Administrative Expenses (variable) 500

Fixed Costs:

Factory Overhead (fixed) $900

Selling Expenses (fixed) 1,000

Administrative Expenses (fixed) 1,000

Frederick Company utilizes a JIT production system and there are no Raw Materials, Work-in-Process or Finished Goods inventories. Use this information to determine the FY 2016 breakeven point in units. Round and enter as a whole number.