Format Painter Clipboard F38 A B C Font D E F G Alignment H J 1 P5.3 Prepare a CVP income statement, and compute break-even point contribution. 2 margin ratio, margin of safety ratio and sales for target net income. 3 4 Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 5 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following 6 revenues and costs. 7 8 9 10. 11 12 13 14 15 16 17 18 Instructions Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $ 1,800,000 430,000 360,000 380,000 280,000 70,000 65,000 20,000 60,000 19 a. Prepare a CVP income statement for 2022 based on management estimates. Include 20 columns for per unit and percent of sales information 21 b. Compute the break-even point in (1) sales units and (2) sales dollars. 22 c. Compute the contribution margin ratio and the margin of safety ratio (Round to the nearest 23 full percent.) 24 d. Determine the sales dollars required to earn net income of $180,000 25 26 NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a 27 cell), into the yellow shaded input cells. 28 29 JORGE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2022 30 31 a 32 33 34 35 36 Sales 37 Variable expenses 38 Cost of apods sold E5.9 P5.3 Sheets Ready 2 Dollar Amounts Per Unit Percent of Sales $ 1,800,000 $ 0.50 Number 8 Clipboard Font A B a D E Sales F Alignment G H JORGE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2022 Number A Dollar Amounts Per Unit Percent of Sales $ 1,800,000 $ 0.50 1 2 3 44 15. 46 47 48 Cost of goods sold Variable expenses B 9 0 Selling expenses Administrative expenses Total variable expenses Contribution margin Fixed expenses Cost of goods sold Selling expenses Administrative expenses Total fixed expenses Net income 49 50 51 b. (1) 52 53 54 55 56 57 58 59 60 61 (2) Break-even point in units Unit selling price Unit variable costs Unit contribution margin Fixed costs Unit contribution margin Break-even point in units Break-even point in dollars 62 Break-even point in units 63 Unit selling price 64 65 66 Break-even point in dollars 67 C Compute the contribution margin ratio and the margin of safety ratio (Round to the nearest Ready E5.9 P5.3 Sheet1 i a Format Painter Clipboard 5j Font Alignment 4 fx A B C Break-even point in dollars H c. Compute the contribution margin ratio and the margin of safety ratio. (Round to the nearest full percent.) Contribution margin ratio Unit contribution margin Unit selling price Contribution margin ratio Margin of safety ratio Total sales dollars Break-even sales (dollars) Margin of safety (dollars) Total sales Margin of safety ratio d. Determine the sales dollars required to earn net income of $180,000 5 Sales dollars required to earn target income 6 Fixed costs 7 Target income 8 Total fixed cost+ target income 9 10 Contribution margin ratio Sales dollars required 1 2 3 4 S 96 97 Number