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Blossom Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the
Blossom Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales $1,500,000 Selling expenses-variable $90,000 Direct materials 410,000 Selling expenses-fixed 50,000 Direct labor 330,000 Administrative expenses-variable 20,000 Manufacturing overhead-variable 350,000 Administrative expenses-fixed 40,000 Manufacturing overhead-fixed 150,000 BLOSSOM COMPANY CVP Income Statement (Estimated) Prepare a CVP income statement for 2022 based on management's estimates. (Round per unit answers to 3 decimal places, e.g. 0.251.) +A > > > > > > > > > EA Total +A Per Unit +A +A $ % of sales Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.) Variable cost per bottle eTextbook and Media $ Compute the break-even point in (1) sales units and (2) sales dollars. (Round answers to O decimal places, e.g. 1,225.) (1) Break-even point (2) Break-even point $ eTextbook and Media units Compute the contribution margin ratio and the margin of safety ratio. Contribution margin ratio Margin of safety ratio eTextbook and Media % % Determine the sales dollars required to earn net income of $150,000. Required sales $
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