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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

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