Carla Vista Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 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		$1,980,000		Selling expensesvariable		$110,000
Direct materials		430,000		Selling expensesfixed		62,000
Direct labor		400,000		Administrative expensesvariable		26,000
Manufacturing overheadvariable		420,000		Administrative expensesfixed		133,200
Manufacturing overheadfixed		280,000

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

Income statement options:

Administrative

Expenses

Contribution

Margin

Cost of Goods Sold

Fixed Expenses

Net Income/(Loss)

Sales

Selling Expenses

Total Fixed Expenses

Total Variable Expenses

Variable Expenses

Gross Profit

CVP Income Statement (Estimated)
select an income statement item				$enter a dollar amount
select an opening name for section one
select an income statement item		$enter a dollar amount
select an income statement item		enter a dollar amount
select an income statement item		enter a dollar amount
select a closing name for section one				enter a total amount for section one
select a summarizing line for the first part				enter a total amount for the first part
select an opening name for section two
select an income statement item		enter a dollar amount
select an income statement item		enter a dollar amount
select an income statement item		enter a dollar amount
select a closing name for section two				enter a total amount for section two
select a closing name for this statement				$enter a total net income or loss amount

b) Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.)

Variable cost per bottle

$ enter the variable cost per bottle rounded to 3 decimal places

c)

Compute the break-even point in (1) units and (2) dollars. (Round answers to 0 decimal places, e.g. 1,225.)

(1)		Compute the break-even point		enter a number of units	units
(2)		Compute the break-even point		$enter a dollar amount

d) 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%.)

Contribution margin ratio		enter percentages rounded to 0 decimal places	%
Margin of safety ratio		enter percentages rounded to 0 decimal places	%

e)Determine the sales dollars required to earn net income of $180,000. (Round answer to 0 decimal places, e.g. 1,225.)

Required sales dollars

$ enter the sales dollars required to earn net income of $180,000