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