Tyson Company bottles and distributes NO-KAL, a diet soft drink. The beverage is sold for 40 cents per 16-ounce bottle to retailers, who charge customers

Instructions

(a) Prepare a CVP income statement for 2002 based on management's 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. (Round to full percent's.)

(d) Determine the sales required to earn net income of $150,000.

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Net sales Direct materials Direct labor Manufacturing overhead- variable Manufacturing overhead- lixed $1,800.000 400,000 Selling expenses-variable Selling expenses-fixed $80,000 65,000 280,000 Administrative expenses- variable 20,000 300,000 Administrative expenses- fixed 52,000 283,000