Jorge 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 77 cents per bottle. For the year 2014, management estimates the following revenues and costs. Sales $ 1,808,500 Selling expensesvariable $ 67,900 Direct materials 425,200 Selling expensesfixed 66,200 Direct labor 359,100 Administrative expensesvariable 46,095 Manufacturing overheadvariable 313,400 Administrative expensesfixed 64,900 Manufacturing overheadfixed 289,500

a)Prepare a CVP income statement for 2014 based on managements estimates.

b) Calculate variable cost per bottle.

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

d)Compute the contribution margin ratio and the margin of safety ratio.

e)Determine the sales dollars required to earn net income of $ 239,800 .