Question
In: Accounting
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 variable cost per bottle. (round variable cost per bottle to 3 decimal places.
C. Compute the break even point in (1) units and (2) dollars. Round answers to 0 decimal places
(1) compute the break even point ______ Units
(2) Compute the break even point $____________-
D. Compute the contribution margin ratio and the margin of safety ratio. Round variable per bottle to 3 decimal places and final answers to 0 decimal places.
E. Determine the sales dollars required to earn net income of $220500. Round answer to 0 decimal places
Solutions
ekkarill92 answered 1 year agoRelated 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 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...
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
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