Reference no: EM132507315

The following totals are used to create 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                               $1,850

Direct Materials                          1,400

Factory Overhead (variable)         2,000

Selling Expenses (variable)               600

Administrative Expenses (variable)      500

Fixed Costs:

Factory Overhead (fixed)                  $500

Selling Expenses (fixed)                   1,000

Administrative Expenses (fixed)       1,000

Question 1: 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)