Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can anyone who answers this please explain where you get numbers from if u have to add anything together or multiply for example. Also I

Can anyone who answers this please explain where you get numbers from if u have to add anything together or multiply for example. Also I know some of the numbers I have are very likely incorrect image text in transcribed
image text in transcribed
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 Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $1,500,000 410,000 330,000 350,000 150,000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $90,000 50,000 20,000 40,000 Prepare a CVP income statement for 2020 based on management's estimates. BLOSSOM COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2020 $ Sales 1500000 Variable Expenses Cost of Goods Sold 1090000 Selling Expenses 90000 Administrative Expenses 20000 Total Variable Expenses V 1200000 Contribution Margin 300000 Fixed Expenses Cost of Goods Sold 890000 Selling Expenses 50000 Administrative Expenses 40000 Total Fixed Expenses 980000 Net Income/(Loss) $ -680000 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) units and (2) dollars. (Round answers to decimal places, eg. 1,225.) (1) Compute the break-even point units (2) Compute the break-even point $ e Textbook and Media 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 O decimal places, e.g. 25%.) Contribution margin ratio % Margin of safety ratio % eTextbook and Media Determine the sales dollars required to earn net income of $150,000. (Round answer to decimal places, eg. 1,225.) Required sales dollars $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions