All Frute Company bottles and distributes Frute Ade, 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 2017, management estimates the following revenues and costs.

Sales	$2,500,000	Selling expensesvariable	$ 80,000
Direct materials	360,000	Selling expensesfixed	250,000
Direct labor 450,000 Manufacturing overhead- variable 270,000 Manufacturing overhead- fixed 380,000		Administrative expenses variable	40,000
		Administrative expenses fixed	150,000

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.

(d) Determine the sales dollars required to earn net income of $624,000.