70.2K

Verified Solution

Link Copied!

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

See Answer