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A) Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.) B) Compute the break-even point in (1) units
A) Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.)
B) Compute the break-even point in (1) units and (2) dollars. (Round answers to 0 decimal places, e.g. 1,225.)
C) Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 3 decimal places, e.g. 0.25 and final answers to 0 decimal places, e.g. 25%.)
Pharoah 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 2020, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $1,850,000 490,000 330,000 350,000 220,000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $102,000 57,000 23,000 111,500
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