Flint 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 2017, management estimates the following revenues and costs.

Sales		$1,870,000		Selling expensesvariable		$50,000
Direct materials		400,000		Selling expensesfixed		55,000
Direct labor		360,000		Administrative expensesvariable		49,000
Manufacturing overheadvariable		450,000		Administrative expensesfixed		52,000
Manufacturing overheadfixed		304,000

> Prepare a CVP income statement for 2017 based on managements estimates.

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

(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. 0.255 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 $165,000.

Required sales dollars

$

FLINT COMPANY CVP Income Statement (Estimated) s s V S