Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 75 cents per bottle. For the year 2017, management estimates the following revenues and costs.

Sales $1,770,000 Selling expensesvariable $60,000 Direct materials 410,000 Selling expensesfixed 50,000 Direct labor 300,000 Administrative expensesvariable 40,500 Manufacturing overheadvariable 340,000 Administrative expensesfixed 52,000 Manufacturing overheadfixed 423,000

(a) Correct answer. Your answer is correct. Prepare a CVP income statement for 2017 based on managements estimates. JORGE COMPANY CVP Income part (b1) Correct answer. Your answer is correct. Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.) Variable cost per bottle $Entry field with correct answer .325

(b2) Correct answer. (1) units and (2) dollars. (Round answers to 0 decimal places, e.g. 1,225.) (1) Compute the break-even point Entry field with incorrect (2) Compute the break-even point

(c) Correct answer. Your answer is correct. 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%.) Contribution margin ratio Entry field with correct answer 35 % Margin of safety ratio Entry field with correct answer 15 %

(d) Determine the sales dollars required to earn net income of $157,500.

Please help with Part (d)

Thank You!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Audit Principle 5 Powerful Steps To Align Your Life With The Laws Of Success

Authors: Jane Ann Craig

1st Edition

1732729107, 978-1732729100

More Books

Students also viewed these Accounting questions

Question

Choose an appropriate organizational pattern for your speech

Answered: 1 week ago

Question

Writing a Strong Conclusion

Answered: 1 week ago