Compute the contribution margin ratio and the margin of

Reference no: EM13580902

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 77 cents per bottle. For the year 2014, management estimates the following revenues and costs.

1) Calculate variable cost per bottle. (Round variable cost per bottle to 2 decimal places, e.g. 0.25.

2) Compute the break-even point in (1) units and (2) dollars.(Round answers to 0 decimal places, e.g. 1,225.)

3) Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 2 decimal places, e.g. 0.25 and final answers to 0 decimal places, e.g. 25%.)

4) Determine the sales dollars required to earn net income of $240,910. (Round answers to 0 decimal places, e.g. 1,225.)

Sales	$1,816,000	Selling expenses-variable	$66,600
Direct materials	427,000	Selling expenses-fixed	65,200
Direct labor	353,000	Administrative expenses-variable	55,120
Manufacturing overhead-variable	315,000	Administrative expenses-fixed	62,000
Manufacturing overhead-fixed	292,000

Reference no: EM13580902

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