Just Question A

Sunburn Company produces and distributes sunscreen lotian. The sunsreen is sold for 1 dollar per bottle to retailers. For the year 2019, management estimates the following revenues and costs: Sales Direct materials Direct labor Manufacturing overhead- variable Manufacturing overhead -fixed $1,700,000 Selling expenses - variable 400,000 Selling expenses - fixed 350,000 Administrative expenses - variable 380,000 Administrative expenses - fixed 200,000 a Prena Instructions Prepare a CVP income statement for 2019 based on managenscht estimates. (b) Compute the break-even point in (1) units and (2) dollars. (c) Compute the contribution margin ratio and the margin of safety ratio Determine the sales dollars required to earn net income of $200,000. (a) Prepare a CVP income statement for 2019 based on management estimates. Sunburn Company CVP Income Statement (Estimated) For the Year Ending December 31, 2019 Sales $1,700,000 Variable expenses Cost of goods sold Selling expenses Administrative expenses Total variable expenses Contribution margin Fixed expenses Cost of goods sold Selling expenses Administrative expenses Total fixed expenses Net income Sunburn Company produces and distributes sunscreen lotian. The sunsreen is sold for 1 dollar per bottle to retailers. For the year 2019, management estimates the following revenues and costs: Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $1,700,000 Selling expenses - variable 400,000 Selling expenses - fixed 350,000 Administrative expenses - variable 380,000 Administrative expenses - fixed 200,000 $50,000 65,000 10,000 80,000