Current Designs Problem 5 Bill Johnson, sales manager, and Diane Buswell, controller, at Current Designs are beginning to analyze the cost considerations for one of the composite models of the kayak division. They have provided the following production and operational costs necessary to produce one composite kayak. Kevlar Resin and supplies Finishing kit (seat, rudder, ropes, etc.) Labor Selling and administrative expenses-variable Selling and administrative expenses-fixed Manufacturing overhead--fixed $300 per kayak $130 per kayak $170 per kayak $420 per kayak $420 per kayak $156,000 per year $240,000 per year Bill and Diane have asked you to provide a cost-volume-profit analysis, to help them finalize the budget projections for the upcoming year. Bill has informed you that the selling price of the composite kayak will be $2,100. Calculate variable costs per unit. Variable costs $ per unit Determine the unit contribution margin. Contribution margin per unit Using the unit contribution margin, determine the break-even point in units for this product line. Break-even point units Assume that Current Designs plans to earn net income of $234,300 on this product line. Using the unit contribution margin, calculate the number of units that need to be sold to achieve this goal. Number of units to be sold units Based on the most recent sales forecast, Current Designs plans to sell 1,000 units of this model. Calculate the margin of safety and the margin of safety ratio. (Round percentage to 1 decimal place, 25.5%.) Margin of safety $ Margin of safety ratio % Click if you would like to Show Work for this question: Open Show Work Question Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER Problem 5-3A (Video) Pharoah 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 $1,850,000 Selling expenses-variable $102,000 Direct materials 490,000 Selling expenses-fixed 57,000 Direct labor 330,000 Administrative expenses-variable 23,000 Manufacturing overhead-variable 350,000 Administrative expenses-fixed 111,500 Manufacturing overhead-fixed 220,000 Prepare a CVP Income statement for 2020 based on management's estimates. PHAROAH COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2020 4 $ Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.) Variable cost per bottle $ Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.) Variable cost per bottle $ Compute the break-even point in (1) units and (2) dollars. (Round answers to o decimal places, e.g. 1,225.) (1) Compute the break-even point units (2) Compute the break-even point $ 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 % Determine the sales dollars required to earn net income of $180,000. (Round answer to o decimal places, e.g. 1,225.) Required sales dollars Click if you would like to Show Work for this question: Open Show Work