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Huber company bottles and distributes No-FIZZ, a fruit drink. The beverage is sold for 50 cents per 16-ounce bottles to retailers, who charge customers 70
Huber company bottles and distributes No-FIZZ, a fruit drink. The beverage is sold for 50 cents per 16-ounce bottles to retailers, who charge customers 70 cents per bottle. For the year 2011, management estimates the following revenue costs. Net sales- $2000000 Direct materials- 360000 Direct labor- 450000 Manufacturing overhead- variable - 270000 manufacturing overhead- fixed- 280000 selling expenses- variable- 80000 selling expenses- fixed- 150000 administrative expenses- variable- 40000 administrative expenses- fixed- 70000 (a) prepare the CVP income statement for 2011 based on management's estimates. (b) Compute the break-even point in (1) units and (2) dollars. (c) Compute the contribution margin ratio and the margin of safety ratio. (d) Determine the sales dollars required to earn net income of $390000
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