Cullumber 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		$1,650,000		Selling expensesvariable		$73,000
Direct materials		520,000		Selling expensesfixed		52,000
Direct labor		340,000		Administrative expensesvariable		27,000
Manufacturing overheadvariable		360,000		Administrative expensesfixed		59,000
Manufacturing overheadfixed		120,000

1.)

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

Variable cost per bottle

$

3.) 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			units
(2)		Compute the break-even point

4.)

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			%
Margin of safety ratio			%

5.) Determine the sales dollars required to earn net income of $230,000. (Round answer to 0 decimal places, e.g. 1,225.)

Required sales dollars

$

Prepare a CVP income statement for 2020 based on management's estimates. CULLUMBER COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2020 $