Sunland Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60...

  
 
 

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Sunland Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 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 Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $1,920,000 410,000 370,000 390,000 280,000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed Prepare a CVP income statement for 2020 based on management's estimates. SUNLAND COMPANY CVP Income Statement (Estimated) $ $147,000 52,000 27,000 42,400 Prepare a CVP income statement for 2020 based on management's estimates. SUNLAND COMPANY CVP Income Statement (Estimated) Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, eg. 0.251) Variable cost per bottle $ Compute the break-even point in (1) units and (2) dollars. (Round answers to 0 decimal places, eg. 1,225) (1) Compute the break-even point (2) Compute the break-even point S units Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 3 decimal places, eg. 0.25 and final answers to O 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, eg. 1,225) Required sales dollars $ Sunland Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 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 Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $1,920,000 410,000 370,000 390,000 280,000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed Prepare a CVP income statement for 2020 based on management's estimates. SUNLAND COMPANY CVP Income Statement (Estimated) $ $147,000 52,000 27,000 42,400 Prepare a CVP income statement for 2020 based on management's estimates. SUNLAND COMPANY CVP Income Statement (Estimated) Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, eg. 0.251) Variable cost per bottle $ Compute the break-even point in (1) units and (2) dollars. (Round answers to 0 decimal places, eg. 1,225) (1) Compute the break-even point (2) Compute the break-even point S units Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 3 decimal places, eg. 0.25 and final answers to O 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, eg. 1,225) Required sales dollars $

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