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 79 cents per bottle. For the year 2014, management estimates the following revenues and costs.

Sales		$1,797,700		Selling expensesvariable		$69,520
Direct materials		327,690		Selling expensesfixed		64,620
Direct labor		348,360		Administrative expensesvariable		21,340
Manufacturing overhead variable		311,710		Administrative expensesfixed		130,780
Manufacturing overheadfixed		284,000

1. Prepare a CVP income statement for 2014 based on managements estimates. 2. Compute the break-even point in (1) units and (2) dollars. 3. Compute the contribution margin ratio and the margin of safety ratio.

4. Determine the sales dollars required to earn net income of $240,200.