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

Sales$1,800,000 Selling expenses - variable 70,000

Direct materials430,000 Selling expenses - fixed 65,000

Direct labor360,000 Administrative expenses - variable 20,000

Manufacturing overhead- variable380,000 Administrative expenses - fixed60,000

Manufacturing overhead -fixed280,000

1.What would a CVP income statement for 2017 based on management estimates look like?

2.What is the contribution margin ratio and the margin of safety ratio?

3.What are the sales dollars required to earn net income of $180,000?