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 2014, management estimates the following revenues and costs.

Prepare a CVP income statement for 2014 based on managemental estimates.

Sales 1,800,000

direct materials 425,500

direct labor 356,300

manufacturing overhead- variable 311,800

manufacturing overhead- fixed 288,200

Selling expenses- variable 68,900

Selling expenses- fixed 67,500

Administrative expenses- variable 93,714

Administrative expenses- fixed 63,400

calculate the variable cost per bottle. -round to 2 decimal places

Compute the break-even point in (1) units and (2) dollars. -round to 0 decimal places

Compute the contribution margin ratio and the margin of safety ratio. -round to 2 decimal places

Determine the sales dollars required to earn net income of $180,000. -round to 0 decimal places

Number of bottles sold = sales /selling price per unit

= 1,800,000 / .50

= 3,600,000 bottles.

Total variable cost:

	Total variable cost	Total fixed cost
Direct material	425,500	-
Direct labor	356,300	-
Manufacturing overhead	311,800	288,200
selling	68,900	67,500
administration	93,714	63,400
Total cost	1,256,214	419,100
Variable cost per unit	1,256,214 /3,600,000 = .35 per bottle

CM ratio = (.50-.35)/.50

= .15 /.50

= .30 or 30%

2)BEP (units) =Fixed cost/Contribution per unit

=419,100 /(.50 -.35)

=419,100 / .15

= 2,794,000 bottles

BEP(dollars) =Fixed cost /CM ratio

= 419,100 / .30

=$ 1,397,000

3)CM ratio = contribution per unit /Selling price

= .15 /.50

= .30 or 305

Margin of safety sales = actual sales -BEP sales

= 1,800,000 - 1,397,000

= $ 403,000

Margin of safety ratio =Margin of safety sales /actual sales

= 403,000 / 1,800,000

= 22.39% vvvvv I need help with vvvvv ANSWER IS NOT 1,997,000 or 1,878,384.