Lorge Company bottles and distributes Livit, 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 2011, management estimates the following revenues and costs.

Instructions
(a) Prepare a CVP income statement for 2011 based on management's estimates.
(b) Compute the break-even point in
(1) Units
(2) Dollars.
(c) Compute the contribution margin ratio and the margin of safety ratio. (Round to full percents.)
(d) Determine the sales dollars required to earn net income of$238,000.

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Net sales Direct materials Direct labor Manufacturing overhead $1,800,000 Selling expenses-variable $70,000 430,000 fixed 65,000 20,000 60,000 xpenses-f 352,000 Adiistrative expenses- 316,000 Adinistrative expenses- 283,000 variable variable Manufacturing overhead fixed fixed