Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive /   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 $1,600        Direct Materials 2,000        Factory Overhead (variable) 2,000        Selling Expenses (variable) 600        Administrative Expenses (variable) 500   Fixed Costs:          Factory Overhead (fixed) $950        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

  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 $1,600        Direct Materials 2,000        Factory Overhead (variable) 2,000        Selling Expenses (variable) 600        Administrative Expenses (variable) 500   Fixed Costs:          Factory Overhead (fixed) $950        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

Accounting

 

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

$1,600

 

     Direct Materials

2,000

 

     Factory Overhead (variable)

2,000

 

     Selling Expenses (variable)

600

 

     Administrative Expenses (variable)

500

 

Fixed Costs:

   

     Factory Overhead (fixed)

$950

 

     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.

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

 

1. Break even point

Break even point = Fixed Costs / Contribution margin

Break even point = $2,950 / $33 per unit = 89 Units

Working notes:

Fixed costs

Particulars $
Factory Overhead 950
Selling Expenses 1,000
Administrative Expenses 1,000
Total Fixed costs 2,950

Contribution Margin

Particulars $
Sales 10,000
Less: Variable costs  
Direct Labor 1,600
Direct Materials 2,000
Factory Overheads 2,000
Selling Expenses 600
Administrative Expenses 500
Contribution Margin 3,300

Contribution Margin = $3,300 / 100 Units = $33 per unit

All the best...

Related Questions