2. 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 $1,800,000 Selling expensesvariable $70,000 Direct materials 430,000 Selling expensesxed 65,000 Direct labor 360,000 Administrative expensesManufacturing overhead variable 20,000 variable 380,000 Administrative expensesManufacturing overhead xed 60,000 xed 280,000

(a) Prepare a CVP income statement for 2017 based on managements estimates. (Show column for total amounts only.)

(b) Compute the break-even point in (1) units and (2) dollars.

(c) Compute the contribution margin ratio and the margin of safety ratio. (Round to nearest full percent.)

(d) Determine the sales dollars required to earn net income of $180,000