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Martinez 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

Martinez 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 $1,850,000 Selling expensesvariable $50,000
Direct materials 430,000 Selling expensesfixed 50,000
Direct labor 330,000 Administrative expensesvariable 32,500
Manufacturing overheadvariable 360,000 Administrative expensesfixed 60,000
Manufacturing overheadfixed 418,500

Prepare a CVP income statement for 2017 based on managements estimates.

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MARTINEZ COMPANY CVP Income Statement (Estimated) v $ V V THE Compute the break-even point in (1) units and (2) dollars. (1) Compute the break-even point units (2) Compute the break-even point s Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 3 decimal places, e.g. 0.255 and final answers to O decimal places, e.g. 25%.) Contribution margin ratio Margin of safety ratio Determine the sales dollars required to earn net income of $141,750. Required sales dollars

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