Reference no: EM13601129

Lorge Company bottles and distributes Livit, 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 2011, management estimates the following revenues and costs.

• Net sales $1,800,000 Selling expenses-variable $70,000
• Direct materials 430,000 Selling expenses-fixed 65,000
• Direct labor 352,000 Administrative expenses-variable 20,000
• Manufacturing overhead-variable 316,000 Administrative expenses-fixed 60,000
• Manufacturing overhead-fixed 283,000

Prepare a CVP income statement for 2011 based on management's estimates. (List amounts from largest to smallest e.g. 10, 5, 3, 2. Enter all amounts as positive amounts and subtract where necessary.)