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)