Ocean City Kite Company manufactures & sells kites for $6.00 each. The variable cost per kite is $3.00 with the current annual sales volume of 100,000 kites.
1.) Ocean City Kite Company manufactures & sells kites for
$6.00 each. The variable cost per kite is $3.00 with the current annual sales volume of 100,000 kites. This volume is currently Ocean City Kite’s breaking even point. Use this information to determine the dollar amount of Ocean City Kite Company’s fixed costs. (Round dollar value to the nearest whole dollar & enter as whole dollars only.)
2.) Ocean City Kite Company sells kites for $11.00 per kite. In FY 2019, total fixed costs are expected to be $215,000 and variable costs are estimated at $5.00 a unit. Ocean City Kite Company wants to have a FY 2019 operating income of $65,000. Use this information to determine the number of units of kites that Ocean City Kite Company must sell in FY 2019 to meet this goal. (Round your answer to a whole number)
3.) The following totals are used to show 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
$1,000
Direct Materials
1,600
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
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 2018 Contribution Margin Percentage. Enter percentage to one decimal place. (example enter 35.5% as 35.5)
4.) The following totals are used to show 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
1,600
Factory Overhead (variable)
2,000
Selling Expenses (variable)
600
Administrative Expenses (variable)
500
Fixed Costs:
Factory Overhead (fixed)
$800
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.
5.) Adelphi Company has budgeted activity for March to reflect net income $135,000. All sales are credit sales. Receivables are planned to increase (decrease -) by $21,000 payables to increase (decrease -) by $1,000 and Depreciation Expense is $48,000. Use this information to determine how much cash will increase (decrease) during the month of March. (Decreases in accounts receivable or accounts payable will have a negative sign in front of number. Round & enter final answer to the nearest whole dollar.)
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