Question
In: Accounting
The following totals are used to create a CVP Income Statement for Frederick Company for FY2018:...
The following totals are used to create a CVP Income Statement for Frederick Company for FY2018:
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Frederick Company |
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Selected Financial Figures |
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For the Year Ended 12/31/18 |
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Sales (100 units) |
$10,000 |
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Variable Costs: |
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Direct Labor |
$1,800 |
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Direct Materials |
1,200 |
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Factory Overhead (variable) |
2,000 |
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Selling Expenses (variable) |
600 |
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Administrative Expenses (variable) |
500 |
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Fixed Costs: |
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Factory Overhead (fixed) |
$700 |
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Selling Expenses (fixed) |
1,000 |
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Administrative Expenses (fixed) |
1,000 |
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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.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
The following totals are used to create a CVP Income Statement for Frederick Company for FY2018:...
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 $1,500 Direct Materials 1,400
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...
The following totals are used to create a CVP Income Statement for Frederick Company for FY2018:...
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
$1,850
Direct
Materials
1,400
Factory Overhead
(variable)
2,000
Selling Expenses
(variable)
600
Administrative Expenses
(variable)
500
Fixed Costs:
Factory Overhead
(fixed)
$850
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...
1) What is a CVP income statement used for? 2) Explain the term sales mix and...
1) What is a CVP income statement used for?
2) Explain the term sales mix and its effects on break-even
sales.
3) What is Margin of Safety and how does it get used in CVP
Analysis?
4) How does a company determine sales mix when a company has
limited resources?
5) How does operating leverage affect profitability?
Before calculating the profit for the period, the totals of the income statement columns on the...
Before calculating the profit for the period, the totals of the
income statement columns on the worksheet are: total debits $70 000
and total credits $60 000. The amount of the profit or loss is:
Select one:
a. $10 000 loss
b. $60 000 profit
c. $10 000 profit
d. $70 000 profit
What does CVP Analysis stand for? What type of income statement must be used when performing...
What does CVP Analysis stand for? What type of income statement
must be used when performing CVP Analysis? What is the target
profit when solving for the break-even point? The formulas to find
Target profit and/or Break-even point in units and Target profit
and/or break-even point in dollars differs by one number. Explain
how these formulas are alike and the one number that makes them
different.
What are the primary elements and totals found on a multi-step income statement? Why are these...
What are the primary elements and totals found on a
multi-step income statement? Why are these important?
The following CVP income statements are available for Blanc Company and Noir Company. Blanc Company Noir...
The following CVP income statements are available for Blanc
Company and Noir Company. Blanc Company Noir Company Sales $455,000
$455,000 Variable costs 273,000 227,500 Contribution margin 182,000
227,500 Fixed costs 159,250 204,750 Net income $22,750 $22,750
Compute margin of safety ratio for each company.
(Round answers to 3 decimal places, e.g.
0.321.)
Margin of Safety Ratio
Blanc Company
Enter a number
Noir Company
Enter a number
Compute the degree of operating leverage for each company.
(Round answers to 2 decimal...
The following CVP income statements are available for Blanc Company and Noir Company. Blanc Company Noir...
The following CVP income statements are available for Blanc
Company and Noir Company.
Blanc Company
Noir Company
Sales
$457,000
$457,000
Variable costs
265,060
155,380
Contribution margin
191,940
301,620
Fixed costs
171,000
280,680
Net income
$20,940
$20,940
Calculate Contribution margin ratio. (Round answers
to 2 decimal places, e.g. 0.32.)
Contribution Margin Ratio
Blanc Company
Noir Company
Compute break-even point in dollars for each company.
(Round answers to 0 decimal places, e.g.
1,225.)
Break-even Point
Blanc Company
$
Noir Company
$
Compute...
The following CVP income statements are available for Blanc Company and Noir Company. Blanc Company Noir...
The following CVP income statements are available for Blanc
Company and Noir Company.
Blanc Company
Noir Company
Sales
$570,000
$570,000
Variable costs
342,000
285,000
Contribution margin
228,000
285,000
Fixed costs
218,880
275,880
Net income
$9,120
$9,120
1. Compute margin of safety ratio for each company.
(Round answers to 3 decimal places, e.g.
0.321.)
Margin of safety ratio
Blanc Company:
Noir Company:
2.
Assuming that sales revenue increases by 20%, prepare a CVP
income statement for each company. (Enter negative
amounts...
The following CVP income statements are available for Blanc Company and Noir Company. Blanc Company Noir...
The following CVP income statements are available for Blanc
Company and Noir Company.
Blanc Company
Noir Company
Sales
$545,000
$545,000
Variable costs
327,000
272,500
Contribution margin
218,000
272,500
Fixed costs
207,100
261,600
Net income
$10,900
$10,900
a.) Compute the break-even point in dollars for each company.
(Round answers to 0 decimal places, e.g.
5,125.)
b.) Compute the margin of safety ratio for each
company. (Round answers to 0 decimal places, e.g.
5,125.)
c.) Compute the degree of operating
leverage for...
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