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Question: nd it rises by 110 per anie tblite a diet...

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nd it rises by $1.10 per anie tB-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce to retailers, who charge customers 75 cents per bottle. For the year bevy 7, management estimates the and costs $1,800,00oSelling expenses- variable Sales Direct materials Direct labor Manufacturing overhead- variable 430,000 Selling expenses -fixed 360,000 380,000 Administrative expenses fixed 280,000 $70,000 65,000 20,000 60,000 Manufacturing overhead -fixed Instructions (a) Prepare b) Compute the break-even point in (1) units and (2) dollars. income statement for 2017 based on management estimates. (show column for total amounts only.) contribution margin ratio and the margin of safety ratio. (Round to the nearest full percent.) a CVP (c) Compute the (d) Determine the sales dollars required to ea rn net income of $180,000 r in cells requesting a value; enter either a number or a formula in cells with at (a) Prepare a CVP income statement for 2017 based on management estimates. (show column for total amounts only JORGE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2017 Value1,soo coo Variable expenses Cost of goods sold Selling expenses Administrative expenses Value Total variable expenses Contribution margin Fixed expenses Cost of goods sold Value
Selling expenses Total (b) Compute the break-even point in (1) units and (2) dollars. (bX1) Br k-even point in units Unit selling price Unit variable costs Unit contribution margin Value Fixed costs Unit contribution margin Break-even point in units Value Value Break-even point in dollars Break-even point in units Unit selling price Break-even point in dollars (bX2) bor Is ntial Value Value ecession implica t. But t for s Compute the contribution margin ratio and the margin of safety ratio. (Round to the nearest full percent.) the n Contribution margin ratio Unit contribution margin Unit selling price Contribution margin ratio Value Value Margin of safety ratio Total sales Value
Break-even sales Value Margin of safety (dollars) Total sales Margin of safety ratic Determine the sales dollars required to earn net income of $180,000. (d) Sales dollars required to earn target income Fixed costs Target income Total fixed cost + target income Value Value Contribution margin ratio Sales dollars required After you have completed P5-2A, consider the following additional 1. As question sume that the unit selling price per bottle changed to S0.60 each, and fixed manufacturing costs increased to $300,000. Show impact of these changes on calculations.
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