Reference no: EM132588496

Problem 1: Ocean City Kite Company sells kites for $9.00 per kite. In FY 2019, total fixed costs are expected to be $235,000 and variable costs are estimated at $5.00 a unit. Ocean City Kite Company wants to have a FY 2019 operating income of $55,000. 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)

Problem 2: The following totals are used to create an 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            1,800

Factory Overhead (variable) 2,000

Selling Expenses (variable)   600

Administrative Expenses (variable) 500

Fixed Costs:

Factory Overhead (fixed)       $750

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

Problem 3: The following totals are used to create an 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                            $1,700

Direct Materials                           1,350

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

Problem 4: Adelphi Company has budgeted activity for March to reflect net income $120,000. All sales are credit sales. Receivables are planned to increase (decrease -) by $-21,000 payables to increase (decrease -) by $7,000 and Depreciation Expense is $46,000. 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.

Problem 5: During FY 2018, Adelphi Company reported sales of $400,000, a contribution margin of $6.00 per unit, fixed costs of $120,000, and net income of $35,000. Use this information to determine the number of units Adelphi sold during FY 2018. (Round answer to nearest whole number)

Problem 6: Towson Company manufactures book cases, and each requires 34 board feet of lumber. Towson expects that 1,800 and 1,550 book cases will be built in June and July, respectively. Towson keeps lumber on hand at 25% of the next month's production needs. Use this information to determine number board feet of lumber that Towson Company should buy in June. (Round & enter final answers to the nearest whole number.)