Question

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 2017 based on management’s estimates.

JORGE COMPANY CVP Income Statement (Estimated) choose the accounting period                                                                      For the Year Ending December 31, 2017December 31, 2017For the Month Ended December 31, 2017
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit				$enter a dollar amount
select an opening name for section one                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit		$enter a dollar amount
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit		enter a dollar amount
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit		enter a dollar amount
select a closing name for section one                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit				enter a total amount for section one
select a summarizing line for the first part                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit				enter a total amount for the first part
select an opening name for section two                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit		enter a dollar amount
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit		enter a dollar amount
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit		enter a dollar amount
select a closing name for section two                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit				enter a total amount for section two
select a closing name for this statement                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit				$enter a total net income or loss amount

  

  

Incorrect answer iconYour answer is incorrect.

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 rounded to 3 decimal places

  

  

Incorrect answer iconYour answer is incorrect.

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 the break-even point in units rounded to 0 decimal places	units
(2)		Compute the break-even point		$enter the break-even point in dollars rounded to 0 decimal places

  

  

Incorrect answer iconYour answer is incorrect.

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	%

  

  

Incorrect answer iconYour answer is incorrect.

Determine the sales dollars required to earn net income of $54,250. (Round answer to 0 decimal places, e.g. 1,225.)

Required sales dollars

$enter the sales dollars required to earn net income of $54,250 rounded to 0 decimal places

  

  

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