Instructions
a.	Prepare a CVP income statement for 2022 based on management estimates. Include columns for per unit and percent of sales information.
b.	Compute the break-even point in (1) sales units and (2) sales dollars.
c.	Compute the contribution margin ratio and the margin of safety ratio. (Round to the nearest full percent.)
d.	Determine the sales dollars required to earn net income of $180,000.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into the yellow shaded input cells.

P53 Additional Question Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead variable Manufacturing overhead-fixed Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses fixed 1,800,000 430,000 360,000 380,000 280,000 70,000 65,000 20,000 60,000 restrictions a. Prepare a CVP income statement for 2022 based on management estimates. Include columns for per unit and percent of sales information b. Compute the break-even point in (1) sales units and (2) sales dollars. c. Compute the contribution margin ratio and the margin of safety ratio. (Round to the nearest full percent.) d. Determine the sales dollars required to earn net income of $180.000. NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into the yellow shaded input cells. Additional Question Assume the unit selling price per bottle changed to $0.60 cach, and fixed manufacturing costs increased to $300,000. Show impact of these changes on calculations, JORGE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2022 Per Unit Percent of Sales Dollar Amounts Sales Variable expenses Cost of goods sold Selling expenses Administrative expenses Total variable expenses Contribution margin Fixed expenses Cost of goods sold Selling expenses Administrative expenses Total fixed expenses Net income b. (1) Break-even point in units Unit selling price Unit variable costs Unit contribution margin Fixed costs Unit contribution margin Break-even point in units (2) Break-even point in dollars Break-even point in units Unit selling price Break-even point in dollars c. Compute the contribution margin ratio and the margin of safety ratio. (Round to the nearest full percent.) Contribution margin ratio Unit contribution margin Unit selling price Contribution margin ratio Margin of safety ratio Total sales dollars Break-even sales (dollars) Margin of safety (dollars) Total sales Margin of safety ratio d. Determine the sales dollars required to earn net income of $180,000. Sales dollars required to earn target income Fixed costs Target income Total fixed cost + target income Contribution margin ratio Sales dollars required When you have completed P5.3, respond to the following additional question, on the P5.3 Sol to Add Question worksheet