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:

Frederick Company

Selected Financial Figures

For the Year Ended 12/31/18

Sales (100 units)

$10,000

Variable Costs:

     Direct Labor

$1,800

     Direct Materials

1,200

     Factory Overhead (variable)

2,000

     Selling Expenses (variable)

600

     Administrative Expenses (variable)

500

Fixed Costs:

     Factory Overhead (fixed)

$700

     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.

Solutions

Expert Solution


Related 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...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT