Question: Please help me with this problem Ivanhoe Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce


Please help me with this problem




Ivanhoe 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 2020, management estimates the following revenues and costs. Sales $1,950,000 Selling expensesvariable $171,000 Direct materials 470,000 Selling expensesxed 59,000 Direct labor 340,000 Administrative expensesvariable 24,000 Manufacturing overheadvariable 360,000 Administrative expensesxed 120,500 Manufacturing overheadxed 230,000 Prepare a CVP income statement for 2020 based on management's estimates. IVANHOE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31,2020 Sales v $ 1,950,000 Variable Expenses V Cost of Goods Sold V $ Selling Expenses V Sales v :5 1,950,000 Variable Expenses V Cost of Goods Sold V $ Selling Expenses V Administrative Expenses V TotalVariabIeExpenses V Contribution Margin V Fixed Expenses V Cost of Goods Sold V Selling Expenses V Administrative Expenses V Total Fixed Expenses V Net Income/(Loss) V $ Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, as. 0.251.) Variable cost per bottle $ :| eTextbook and Media Compute the break-even point in {1) units and (2) dollars. {Round answers to 0 decimal places, as. 1,225.) (1) Compute the break-even point ':| units (2) Compute the break-even point $ ':| Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 3 decimal places, e3. 0.25 and nal answers to 0 decimal places, e.g. 25%.) Contribution margin ratio % Margin of safety ratio % eTextbook and Media Determine the sales dollars required to earn net income of $210,000. (Round answer to 0 decimal places, ag. 1,225.) Required sales dollars $ |:|
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
