Blossom 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		$1,500,000		Selling expensesvariable		$90,000
Direct materials		410,000		Selling expensesfixed		50,000
Direct labor		330,000		Administrative expensesvariable		20,000
Manufacturing overheadvariable		350,000		Administrative expensesfixed		40,000
Manufacturing overheadfixed		150,000

1.) Prepare a CVP income statement for 2020 based on managements estimates.

2.) Calculate variable cost per bottle.

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

4.) Compute the contribution margin ratio and the margin of safety ratio.

5.) Determine the sales dollars required to earn net income of $150,000.