Cullumber Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for...
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Accounting
Cullumber 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
$1,750,000
Selling expensesvariable
$113,000
Direct materials
460,000
Selling expensesfixed
50,000
Direct labor
390,000
Administrative expensesvariable
27,000
Manufacturing overheadvariable
410,000
Administrative expensesfixed
77,500
Manufacturing overheadfixed
100,000
Prepare a CVP income statement for 2020 based on managements estimates.
CULLUMBER COMPANY CVP Income Statement (Estimated)For the Year Ending December 31, 2020
Variable cost per bottle
$
Contribution margin ratio
%
Margin of safety ratio
%
Required sales dollars
$
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