Question

In: Accounting

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

Cullumber 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 $1,800,000 Selling expenses—variable $105,000
Direct materials 510,000 Selling expenses—fixed 62,000
Direct labor 390,000 Administrative expenses—variable 25,000
Manufacturing overhead—variable 410,000 Administrative expenses—fixed 96,000
Manufacturing overhead—fixed 130,000

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.)

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

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%.)

Determine the sales dollars required to earn net income of $170,000. (Round answer to 0 decimal places, e.g. 1,225.)

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

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 60...
Sheridan 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 $79,000 Direct materials 500,000 Selling expenses—fixed 56,000 Direct labor 380,000 Administrative expenses—variable 27,000 Manufacturing overhead—variable 400,000 Administrative expenses—fixed 179,500 Manufacturing overhead—fixed 210,000 Prepare a CVP income statement for 2020 based on management’s estimates. Calculate variable cost...
Sheridan Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60...
Sheridan 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 $79,000 Direct materials 500,000 Selling expenses—fixed 56,000 Direct labor 380,000 Administrative expenses—variable 27,000 Manufacturing overhead—variable 400,000 Administrative expenses—fixed 179,500 Manufacturing overhead—fixed 210,000 Prepare a CVP income statement for 2020 based on management’s estimates. SHERIDAN COMPANY CVP...
Sheridan Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60...
Sheridan 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 $79,000 Direct materials 500,000 Selling expenses—fixed 56,000 Direct labor 380,000 Administrative expenses—variable 27,000 Manufacturing overhead—variable 400,000 Administrative expenses—fixed 179,500 Manufacturing overhead—fixed 210,000 Prepare a CVP income statement for 2020 based on management’s estimates. SHERIDAN COMPANY CVP...
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...
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 2020, 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 Prepare a CVP income statement for 2020 based on management’s estimates.    Calculate variable...
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...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT