Calculate variable cost per bottle

Reference no: EM131889737

Problem

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.

a.) Prepare a CVP income statement for 2017 based on management estimates.
b.) Calculate variable cost per bottle
c.) Compute the break even point in (1) units and (2) dollars
c.) Compute the contribution margin ratio and the margin of safety ratio
d.) Determine the sales dollars requested to earn net income of $41,600.

Sales	$2,064,000	Selling expenses-variable	$70,000
Direct materials	440,000	Selling expenses-fixed	45,000
Direct labor	300,000	Administrative expenses-variable	68,400
Manufacturing overhead-variable	360,000	Administrative expenses-fixed	52,000
Manufacturing overhead-fixed	637,400

Reference no: EM131889737

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