$ $ P22-2B, Compute a CVP income statement, compute break-even point, contribution margin ratio, margin of safety ratio, and sales for target net income All Frute Company bottles and distributes Frute Ade, a fruit drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. who charge customers 70 cents per bottle. For the year 2014, management estimates the following revenues and costs. Sales $ 2,500,000 Direct materials $ 360,000 Direct labor 450,000 Manufacturing overhead 270,000 Variable Manufacturing overhead 380,000 Fixed Selling expenses 80,000 Variable Selling expenses 250,000 Fixed Administrative expenses $ 40,000 Variable Administrative expenses $ 150,000 Fixed Instructions: (a) Prepare a CVP income statement for 2014 based on management's estimates. (Show column for total amounts only.) (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 nearest full percent.) (d) Determine the sales dollars required to earn net income of $624,000. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". $ $ Value ? (a) ALL FRUTE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2014 Sales Revenue Variable Expenses Cost of Goods Sold Selling Expenses Value Administrative Expenses Value Total Variable Expenses Contribution Margin Fixed Expenses Cost of Goods Sold Value Selling Expenses Value Administrative Expenses Value Total Fixed Expenses Net Income ? ? ? ? (b) (1) Value Unit Selling Price Unit Variable costs Contribution Margin per unit ? ? ? Fixed Costs Contribution Margin per unit Break-even point (units) ? ? (b) (2) ? Break-even point in units Unit selling price Break-even point (dollars) Value ? OR ? Fixed Costs Contribution Margin Ratio Contribution margin per unit ? Unit selling price Value Break-even point (dollars) ? ? (c) Contribution Margin Ratio Contribution margin per unit ? Unit selling price Value Value Margin of Safety Ratio Sales Break-even point (dollars) Excess over break-even Sales ? d) ? Value ? Total fixed expenses Desired net income Contribution margin ratio Required sales