1) Prepare a CVP income statement for 2017 based on managements estimates.

2) Calculate variable cost per bottle.

3)Compute the break-even point in (1) units and (2) dollars.

4) Compute the contribution margin ratio and the margin of safety ratio.

5) Determine the sales dollars required to earn net income of $54,250

Problem 18-2A Jorge 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 2017, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $1,840,000 440,000 300,000 360,000 511,500 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $70,000 55,000 26,000 46,000 JORGE COMPANY CVP Income Statement (Estimated)