Question
Lyann A Cur vn P22-2A Hytek Company bottles and distributes Livit, a diet soft drink. The beverage is sold for 50 cents per 16 -ounce
Lyann A Cur vn P22-2A Hytek Company bottles and distributes Livit, a diet soft drink. The beverage is sold for 50 cents per 16 -ounce bottle to retailers, who charge customers 75 cenis per bottle. For the year 2012, management estimates the following revenues and costs. Net sales Direct materials Direct labor Marafacturing overheadvariable Manufacturing overheadfixced $1,800,000quad Selling expenses - variable 430,000 352,000 316.000 283,000 Selling expenses - fixed Administrative expensesvariable Administrative expenses fixed $70.000 65,000 20.000 60,000
Instructions
(a) Prepare a CVP income statement for 2012 based on management's estimates.
(b) Compute the break-even point in units
c) Compute the break-even point in dollars.
(d) Determine the sales dollars required to carn net
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