Question: Please help! Due tonight. a) Calculate variable costs per bottle. (Round variable cost per bottle to 2 decimal places, e.g. 0.25.) b) Compute the break-even
Problem 18-2A (Part Level Submission) 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 $1,800,000 Selling expenses-variable 380,000 Selling expenses-fixed 310,000 Administrative expenses-variable 300,000 Administrative expenses-fixed 444,000 $60,000 50,000 30,000 50.000 (a) Your answer is correct. Prepare a CVP income statement for 2017 based on management's estimates. JORGE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2017 1,800,000 Sales Variable Expenses Cost of Goods Sold 990,000 Selling Expenses 60,000 Administrative Expenses 30,000 Total Variable Expenses 1,080,000 Contribution Margin 720,000 Fixed Expenses Cost of Goods Sold 444,000 Selling Expenses 50,000 Administrative Expenses 50,000 Total Fixed Expenses 544,000 Net Income/(Loss) 176,000 Click if you would like to Show Work for this question: Open Show Work
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