Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. Management estimates the following revenues and costs.

Sales				$1 800 000		Selling expenses - variable				$70 000
Direct materials				430 000		Selling expenses - fixed				65 000
Direct labor				360 000		Administrative expenses - variable				20 000
Manufacturing overhead- variable				380 000		Administrative expenses - fixed				60 000
Manufacturing overhead -fixed				280 000

Compute the break-even point in (1) units and (2) dollars.
(1)	Break-even point in units
	Unit selling price			.5
	Unit variable costs			.35
	Unit contribution margin			.15
	Fixed costs			?
	Unit contribution margin			?
	Break-even point in units			?
(2)	Break-even point in dollars
	Break-even point in units			?
	Unit selling price			?
	Break-even point in dollars			?

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				?
Break-even sales				?
Margin of safety (dollars)				?
Total sales				?
Margin of safety ratio (%)				?
Determine the sales dollars required to earn net income of $180,000.
Sales dollars required to earn target income
Fixed costs				?
Target income				Value
Total fixed cost + target income				?
Contribution margin ratio				?
Sales dollars required				?