Question

Carla Vista Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales $1,980,000 Selling expenses—variable $110,000 Direct materials 430,000 Selling expenses—fixed 62,000 Direct labor 400,000 Administrative expenses—variable 26,000 Manufacturing overhead—variable 420,000 Administrative expenses—fixed 133,200 Manufacturing overhead—fixed 280,000 (a) Prepare a CVP income statement for 2020 based on management’s estimates. CARLA VISTA COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2020 select an income statement item $enter a dollar amount select an opening name for section one select an income statement item $enter a dollar amount select an income statement item enter a dollar amount select an income statement item enter a dollar amount select a closing name for section one enter a total amount for section one select a summarirzing line for the first part enter a total l amount for the first part select an opening name for section two select an income statement item enter a dollar amount select an income statement item enter a dollar amount select an income statement item enter a dollar amount select a closing name for section two enter a total amount for section two select a closing name for this statement $enter a total net income or loss amount

Answer 1