22-2B

Answer a, b, c, and d please

P22-2B Mobley 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 2012, management estimates the following revenues and costs. $ 80,000 150,000 450,000 Administrative expenses-variable 40,000 Net sales Direct materials Direct labor Manufacturing overhead-variable 270,000 Administrative expenses-fixed 70,000 Manufacturing overhead-fixed $2,000,000 Selling expenses-variable 360,000 Selling expenses-fixed 280,000 Instructions (a) Prepare a CVP income statement for 2012 based on management's estimates. (b) Compute the break-even point in (1) units and (2) dollars. (e) Compute the contribution margin ratio and the margin of safety ratio (d) Determine the sales dollars required to earn net income of $390,000