Question 11 (5 points)

Ocean City Kite Company manufactures & sells kites for $8.50 each. The variable cost per kite is $3.50 and the breakeven point is 60,000 kites. Use this information to determine the dollar amount of Ocean City Kite Company's fixed costs. Round to closest whole number (no cents).

Your Answer:

Question 11 options:

Answer

Question 12 (5 points)

The following totals are used to create a CVP Income Statement for Frederick Company for FY2020:

Frederick Company
Selected Financial Figures
For the Year Ended 12/31/20
Sales (100 units)		$10,000
Variable Costs:
Direct Labor	$1,150
Direct Materials	1,250
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 the FY 2020 breakeven point in units. Round and enter as a whole number.

Your Answer: