Question

The following totals are used to create 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

$1,550

     Direct Materials

1,500

     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 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)

 

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