Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 90 cents per bottle. For the year 2017, management estimates the following revenues and costs.

Sales		$1,848,000		Selling expensesvariable		$70,000
Direct materials		440,000		Selling expensesfixed		75,000
Direct labor		330,000		Administrative expensesvariable		23,600
Manufacturing overheadvariable		430,000		Administrative expensesfixed		52,000
Manufacturing overheadfixed		404,000

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

2. Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.)

3. Compute the break-even point in (1) units and (2) dollars. (Round answers to 0 decimal places, e.g. 1,225.) a. Compute break even point __ units

b. Compute break even point __ $$

4. Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 3 decimal places, e.g. 0.25 and final answers to 0 decimal places, e.g. 25%.)

a. Contribution margin ratio __%

b. Margin of safety ratio __%

5. Determine the sales dollars required to earn net income of $51,000

a. Required sales dollars __$$