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Michel bottles and distributes B-Lite, a diet soft drink. Price per bottle is expected to...

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Accounting

Michel bottles and distributes B-Lite, a diet soft drink. Price per bottle is expected to be $1.20
For the year 2022, M company management estimates the following revenues and expenses:
Sales $2,280,000 Selling expenses - variable $110,000
Direct materials 540,000 Selling expenses - fixed 65,000
Direct labor 550,000 Administrative expenses - variable 30,000
Manufacturing overhead- variable 480,000 Administrative expenses - fixed 65,000
Manufacturing overhead -fixed 350,000
(a) Prepare a CVP income statement for 2022 based on management estimates.
(b) Compute the break-even point in (1) units and (2) dollars.
(c ) Compute the contribution margin ratio and the margin of safety ratio.
(d) Determine the sales dollars required to earn net income of: $ 150,000

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