Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. cullumber company bottles and distributes b-lite,

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

70.2K

Verified Solution

Question

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 $

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students