70.2K

Verified Solution

Question

Accounting

image
image
image
Question 9 of Sandhill 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. $132,000 Sales $1,900,000 470,000 63,000 Selling expenses-variable Selling expenses-fixed Administrative expenses--variable Administrative expenses --fixed 28,000 Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed 340,000 94,500 360,000 270,000 Prepare a CVP income statement for 2020 based on management's estimates SANDHILL COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2020 $ e Textbook and Media Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, a.s. 0.251 ale cost per bottle $ Compute the break-even point in (1) units and (2) dollars. (Round answers to 0 decimal places, e.g. 1,225.) units (1) Compute the break-even point $ (2) Compute the break-even point e Textbook and Media 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 e Textbook and Media Determine the sales dollars required to earn net income of $210,000. (Round answer to O decimal places, e.g. 1,225.) $ 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