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Jorge company bottles and distributes B-lite, a diet soft drink. The beverage is sold for 50...

Jorge company bottles and distributes B-lite, a diet soft drink. The beverage is sold for 50 cents per 16 ounce bottle to retailers. For the year 2020, management estimates the following revenues and costs.

Sales $1,800,000
Direct materials 430,000
Direct labor 360,000
Manufacturing overhead- variable 380,000
Manufacturing overhead -fixed 280,000

  

Selling expenses - variable $70,000
Selling expenses - fixed 65,000
Administrative expenses - variable 20,000
Administrative expenses - fixed

60,000
(a) Prepare a CVP income statement for 2020 based on management estimates.  (show column for total amounts only.)
(b) Compute the break-even point in (1) units and (2) dollars.
(c ) Compute the contribution margin ratio and the margin of safety ratio. (Round to the nearest full percent.)
(d) Determine the sales dollars required to earn net income of $180,000.

  

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