Cullumber 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		$1,800,000		Selling expensesvariable		$105,000
Direct materials		510,000		Selling expensesfixed		62,000
Direct labor		390,000		Administrative expensesvariable		25,000
Manufacturing overheadvariable		410,000		Administrative expensesfixed		96,000
Manufacturing overheadfixed		130,000

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

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

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

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%.)

Determine the sales dollars required to earn net income of $170,000. (Round answer to 0 decimal places, e.g. 1,225.)