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Jorge 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 78 cents per bottle. For the year 2014, management estimates the following revenues and costs. Sales $ 1,805,800 Selling expensesvariable $ 65,400 Direct materials 428,800 Selling expensesfixed 65,400 Direct labor 358,300 Administrative expensesvariable 47,386 Manufacturing overheadvariable 310,000 Administrative expensesfixed 60,200 Manufacturing overheadfixed 293,000

*(a) Your answer is partially correct. Try again. Prepare a CVP income statement for 2014 based on managements estimates. JORGE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2014 Sales $ 1805800 Variable Expenses Cost of Goods Sold $ 1097100 Selling Expenses 65400 Administrative Expenses 47386 Total Variable Expenses 1209886 Contribution Margin 595914 Fixed Expenses Cost of Goods Sold 293,000 Selling Expenses 65400 Administrative Expenses 60200 Total Fixed Expenses 418600 Net Income/(Loss) $

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Variable Cost per Bottle: $ .34

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Compute the break-even point in (1) units and (2) dollars. (Round answers to 0 decimal places, e.g. 1,225.) (1) Compute the break-even point _____ units (2 Determine the sales dollars required to earn net income of $ 241,100 . (Round answers to 0 decimal places, e.g. 1,225.) Required sales dollars $______ __ Compute the contribution margin ratio and the margin of safety ratio. (Round answers to 0 decimal places, e.g. 25%.) Contribution margin ratio % Margin of safety ratio % Don't show me this message again for the assignment

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