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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
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 Direct materials $1,750,000 Selling expenses-variable $113,000 460,000 Selling expenses-fixed 50,000 390,000 Administrative expenses-variable 27,000 Manufacturing overhead-variable Manufacturing overhead-fixed 410,000 Administrative expenses-fixed 100,000 77,500 Direct labor (a)
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