Pronghorn Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for...
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Pronghorn 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 90 cents per bottle. For the year 2017, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $1,956,000 500,000 360,000 390,000 374,800 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $50,000 65,000 69,200 48,000 Prepare a CVP income statement for 2017 based on management's estimates. Compute the break-even point in (1) units and (2) dollars. (1) Compute the break-even point units (2) Compute the break-even point $ Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 3 decimal places, e.g. 0.255 and final answers to 0 decimal places, e.g. 25%.) Contribution margin ratio % Margin of safety ratio % Determine the sales dollars required to earn net income of $88,200. Required sales dollars
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