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Crane 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		$1,550,000		Selling expensesvariable		$72,000
Direct materials		440,000		Selling expensesfixed		53,000
Direct labor		340,000		Administrative expensesvariable		28,000
Manufacturing overheadvariable		360,000		Administrative expensesfixed		48,500
Manufacturing overheadfixed		100,000

Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.)

Variable cost per bottle

$________________

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)		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. 0.25 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 $180,000. (Round answer to 0 decimal places, e.g. 1,225.)

Required sales dollars

$_________________

Prepare a CVP income statement for 2020 based on management's estimates. CRANE COMPANY CVP Income Statement (Estimated)

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