Reference no: EM132955592

The following totals are used to create a CVP Income Statement for Frederick Company for FY2020:

Frederick Company

Selected Financial Figures

For the Year Ended 12/31/20

Sales (100 units) $10,000

Variable Costs:

Direct Labor $1,950

Direct Materials 1,400

Factory Overhead (variable) 2,000

Selling Expenses (variable) 600

Administrative Expenses (variable) 500

Fixed Costs:

Factory Overhead (fixed) $1,000

Selling Expenses (fixed) 1,000

Administrative Expenses (fixed) 1,000

Problem 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 2020 Contribution Margin Percentage. Enter percentage to one decimal place. (example enter 35.5% as 35.5)