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

Sales	$1,800,000	Selling expenses—variable	$70,000
Direct materials	430,000	Selling expenses—fixed	65,000
Direct labor	360,000	Administrative expenses—variable	20,000
Manufacturing overhead—variable	380,000	Administrative expenses—fixed	60,000
Manufacturing overhead—fixed	280,000

Prepare a CVP income statement for 2020 based on management’s estimates.

Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.)

Variable cost per bottle

$enter Variable cost per bottle in dollars rounded to 3 decimal places

Compute the break-even point in (1) units and (2) dollars. (Round answers to 0 decimal places, e.g. 1,225.)

(1)		Compute the break-even point		enter a number of units rounded to 0 decimal places	units
(2)		Compute the break-even point		$enter a dollar amount rounded to 0 decimal places

Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 3 decimal places, e.g. 0.25 and final answers to 0 decimal places, e.g. 25%.)

Contribution margin ratio		enter percentages rounded to 0 decimal places	%
Margin of safety ratio		enter percentages rounded to 0 decimal places	%

Determine the sales dollars required to earn net income of $180,000. (Round answer to 0 decimal places, e.g. 1,225.)

Required sales dollars

$enter the Required sales dollars rounded to 0 decimal places

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

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, who charge customers 75 cents per bottle. For the year 2017, management estimates the following revenues and costs. Sales $1,840,000 Selling expenses—variable $50,000 Direct materials 410,000 Selling expenses—fixed 45,000 Direct labor 350,000 Administrative expenses—variable 16,000 Manufacturing overhead—variable 370,000 Administrative expenses—fixed 60,000 Manufacturing overhead—fixed 365,750 A. Prepare a CVP income statement for 2017 based on management estimates. B. Calculate...

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, who charge customers 75 cents per bottle. For the year 2017, management estimates the following revenues and costs. Sales $1,840,000 Selling expenses—variable $70,000 Direct materials 440,000 Selling expenses—fixed 55,000 Direct labor 300,000 Administrative expenses—variable 26,000 Manufacturing overhead—variable 360,000 Administrative expenses—fixed 46,000 Manufacturing overhead—fixed 511,500 Partially correct answer iconYour answer is partially correct. Prepare a CVP income statement for...

Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60...

Jorge 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 90 cents per bottle. For the year 2017, management estimates the following revenues and costs. Sales $1,848,000 Selling expenses—variable $70,000 Direct materials 440,000 Selling expenses—fixed 75,000 Direct labor 330,000 Administrative expenses—variable 23,600 Manufacturing overhead—variable 430,000 Administrative expenses—fixed 52,000 Manufacturing overhead—fixed 404,000 1. Prepare a CVP income statement for 2017 based on management’s estimates. 2. Calculate...

Monty Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50...

Monty Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2017, management estimates the following revenues and costs. Sales $1,640,000 Selling expenses—variable $50,000 Direct materials 420,000 Selling expenses—fixed 70,000 Direct labor 350,000 Administrative expenses—variable 30,000 Manufacturing overhead—variable 380,000 Administrative expenses—fixed 48,000 Manufacturing overhead—fixed 208,250 1.Prepare a CVP income statement for 2017 based on management’s estimates. MONTY COMPANY CVP...

Blossom Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50...

Blossom Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 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 $1,950,000 Selling expenses—variable $67,000 Direct materials 550,000 Selling expenses—fixed 61,000 Direct labor 350,000 Administrative expenses—variable 28,000 Manufacturing overhead—variable 370,000 Administrative expenses—fixed 59,250 Manufacturing overhead—fixed 260,000 Correct answer iconYour answer is correct. Prepare a CVP income statement for 2020 based...

Wildhorse Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50...

Wildhorse Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 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 $1,750,000 Selling expenses—variable $108,000 Direct materials 450,000 Selling expenses—fixed 54,000 Direct labor 400,000 Administrative expenses—variable 22,000 Manufacturing overhead—variable 420,000 Administrative expenses—fixed 71,000 Manufacturing overhead—fixed 120,000 Compute the break-even point in (1) units and (2) dollars. (Round answers to 0...

Ivanhoe Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50...

Ivanhoe Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 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 $1,650,000 Selling expenses—variable $76,500 Direct materials 460,000 Selling expenses—fixed 51,000 Direct labor 330,000 Administrative expenses—variable 21,000 Manufacturing overhead—variable 350,000 Administrative expenses—fixed 99,000 Manufacturing overhead—fixed 180,000 Part 1 Partially correct answer iconYour answer is partially correct. Prepare a CVP income...

Cullumber Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50...

Cullumber Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 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 $1,750,000 Selling expenses—variable $113,000 Direct materials 460,000 Selling expenses—fixed 50,000 Direct labor 390,000 Administrative expenses—variable 27,000 Manufacturing overhead—variable 410,000 Administrative expenses—fixed 77,500 Manufacturing overhead—fixed 100,000 Prepare a CVP income statement for 2020 based on management’s estimates. CULLUMBER COMPANY CVP...

Sheridan Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50...

Sheridan Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 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 $2,000,000 Selling expenses—variable $212,000 Direct materials 480,000 Selling expenses—fixed 50,000 Direct labor 330,000 Administrative expenses—variable 28,000 Manufacturing overhead—variable 350,000 Administrative expenses—fixed 90,000 Manufacturing overhead—fixed 280,000 A) Compute the break-even point in (1) units and (2) dollars. (Round answers to...

Problem 18-2A Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold...

Problem 18-2A Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2014, management estimates the following revenues and costs. Sales $ 1,800,000 Selling expenses—variable $ 70,000 Direct materials 430,000 Selling expenses—fixed 65,000 Direct labor 360,000 Administrative expenses—variable 20,000 Manufacturing overhead—variable 380,000 Administrative expenses—fixed 60,000 Manufacturing overhead—fixed 280,000

Subjects