Question: this is all one problem Problem #2 - CVP Income Statement All Erute. Company bottles and distributes Esute Aid. The beverage is sold for $.50

this is all one problem
this is all one problem Problem #2 - CVP Income Statement All

Problem #2 - CVP Income Statement All Erute. Company bottles and distributes Esute Aid. The beverage is sold for $.50 per 16-ounce bottle to retailers, who charge customers $.70 per bottle. For the year 2020, management estimates the following revenues and costs. Sales 2,500,000 Selling expense - variable 80,000 Direct materials 360,000 Selling expense - fixed 250,000 Direct labor 450,000 Administrative expense- 40,000 variable Manufacturing overhead- 270,000 Administrative expense- 150,000 variable fixed Manufacturing overhead - 380,000 fixed a. Prepare a CVP income statement for 2020 based on management's estimate. All Frute Company CVP Income Statement Net 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 expenses Net income b. Compute the break-even point in (1) units and (2) dollars. c. Compute the contribution margin ratio and the margin of safety ratio. d. Determine the sales dollars required to earn net income of $640,000

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