187 1 P5-2A Prepare a CVP income statement compute break even point contibution margin ratio, margin of safety ratio e Jorge Company bottles and distributes B.Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce botle and sales for target net income 4 to retailers, who charge customers 75 cents per bottle. For the year 2017, management estimates the folowing revenues 5 and costs Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead -fixed $70,000 65,000 20,000 60,000 $1,800,000Selling expenses-variable 430,000 Selling expenses fixed 360,000 Administrative expenses- variable 380,000 Administrative expenses-fixed 280,000 12 Instructions 3 (a) Prepare a CVP income statement for 2017 based on management estimates. (show column for total amount 14 (b) Compute the break-even point in (1) units and (2) dollars s (c) Compute the contribution margin ratio and the margin of safety ratio (Round to the nearest full percent) 7 NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "2" 16 (d) Determine the sales dollars required to earn net income of $180,000 1 (a) Prepare a CVP income statement for 2017 based on management estimates, (show column for total amounts only ) JORGE COMPANY CVP Income Statement (Estimated