Reference no: EM133037301

Question - Computing the contribution margin ratioand the margin of safety ratio with the following information - Ivanhoe 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 2020, management estimates the following revenues and costs.

Sales 1950000

Direct materials 470000

Direct labor 340000

Manufacturing overhead--variable 360000

Manufacturing overhead--fixed 230000

Selling expenses--variable 171000

Selling expenses--fixed 59000

Administrative expenses--variable 24000

Administrative expenses--fixed 120500