Question 7 (5 points)

Towson Company manufactures book cases, and each requires 20 board feet of lumber. Towson expects that 1,500 and 1,650 book cases will be built in June and July, respectively. Towson keeps lumber on hand at 40% 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 answer to the nearest whole number.)

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Question 8 (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	$1,550
Direct Materials	1,150
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 FY 2020 Contribution Margin Percentage. Enter percentage to one decimal place. (example enter 35.5% as 35.5)

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