contribution margin nstructions: Prepare a CVP income statement, compute break-even point, ratio, margin of safety ratio, and sales for target net income. Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for $0.50 per 16-ounce bottle to retailers, who charge customers $0.75 per bottle. For the year 2016, management estimates the following revenues and costs Net sales $70,000 $1,800,000 Selling expenses Direct materials 430,000 Selling expenses 65,000 20,000 Direct labor 360,000 Administrative expenses Manufacturing overhead 60,000 330.000 Administrative expenses Manufacturing overhead 280,000 Instructions: (a) Prepare a CVP income statement for 2016 based on management's estimates. JORGE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2016 $1,800,000 Variable expenses (1) Manufacturing overhead $380,000 Selling expenses 70,000 20,000 Administrative expenses 470,000 Total variable expenses Contribution margin 1,330,000 Fixed expenses Manufacturing overhead 280,000 165,000 Selling expenses 60,000 Administrative expenses 405,000 Total fixed expenses Net income $925,000 Computation of the variable portion of Cost of Goods Sold (1) Tit Amount Tit Amount Amount