Monty 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 $1,640,000 Selling expensesvariable $50,000 Direct materials 420,000 Selling expensesfixed 70,000 Direct labor 350,000 Administrative expensesvariable 30,000 Manufacturing overheadvariable 380,000 Administrative expensesfixed 48,000 Manufacturing overheadfixed 208,250

1.Prepare a CVP income statement for 2017 based on managements estimates. MONTY COMPANY CVP Income Statement (Estimated) $ $ $

2.Compute the break-even point in (1) units and (2) dollars. (1) Compute the break-even point units (2) Compute the break-even point $

3. 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 0 decimal places, e.g. 25%.) Contribution margin ratio % Margin of safety ratio %

4. Determine the sales dollars required to earn net income of $150,000. Required sales dollars