Huber Company bottles and distributes No-FIZZ, 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 2010, management estimates the following revenues and costs.

Instructions(a) Prepare a CVP income statement for 2010 based on management's estimates.(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$390,000.

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Selling expenses-variable Selling expenses-fixed Administrative expenses- variable Administrative expenses- fixed Net sales Direct materials $2,000,000 $ 80,000 150,000 360,000 Manufacturing overhead- variable Manufacturing overhead- fixed 40,000 270,000 70,000 280,000