Carla Vista 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		$2,000,000		Selling expensesvariable		$109,000
Direct materials		550,000		Selling expensesfixed		58,000
Direct labor		400,000		Administrative expensesvariable		21,000
Manufacturing overheadvariable		420,000		Administrative expensesfixed		52,000
Manufacturing overheadfixed		190,000

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

Calculate variable cost per bottle.

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

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

Determine the sales dollars required to earn net income of $190,000.