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Sheridan Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for...

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Accounting

Sheridan 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 75 cents per bottle. For the year 2020, management estimates the following revenues and costs.

Sales

 $1,980,000

Selling expensesvariable

 $79,000

Direct materials

 500,000

Selling expensesfixed

 56,000

Direct labor

 380,000

Administrative expensesvariable

 27,000

Manufacturing overheadvariable

 400,000

Administrative expensesfixed

 179,500

Manufacturing overheadfixed

 210,000

Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 3 decimal places, e.g. 0.25 and final answers to 0 decimal places, e.g. 25%.) Contribution margin ratio enter percentages rounded to 0 decimal places % Margin of safety ratio enter percentages rounded to 0 decimal places % Save for Later

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