Ivanhoe 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		$1,650,000		Selling expensesvariable		$76,500
Direct materials		460,000		Selling expensesfixed		51,000
Direct labor		330,000		Administrative expensesvariable		21,000
Manufacturing overheadvariable		350,000		Administrative expensesfixed		99,000
Manufacturing overheadfixed		180,000

Prepare a CVP income statement for 2020 based on managements estimates.

IVANHOE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2020 Sales 1,650,000 Variable Expenses Cost of Goods Sold Selling Expenses 76,500 Administrative Expenses 21,000 Total Variable Expenses Contribution Margin Fixed Expenses Cost of Goods Sold Selling Expenses 51,000 Administrative Expenses 99,000 Total Fixed Expenses $ Net Income/(Loss) 40