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Need some help with calculating the variable cost per bottle, thanks! Sandhill Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold
Need some help with calculating the variable cost per bottle, thanks!
Sandhill Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales $1,900,000 Selling expenses-variable $132,000 Direct materials 470,000 Selling expenses-fixed 63,000 Direct labor 340.000 Administrative expenses-variable 28,000 Manufacturing overhead-variable 360,000 Administrative expenses-fixed 94,500 Manufacturing overhead-fixed 270,000Income Statement : Particulars Amount($) Amount($) Sales Revenue 1900000 Less : Variable Expenses :7 Cost of Goods Sold ($47000O+$340000+$360000) 1170000 Selling Expenses 132000 Administrative Expenses 28000 Total Variable Expenses 1330000 Contribution Margin ($19000007$1330000l 570000 Less: Fixed Expenses: Cost of Goods Sold 270000 Selling Expenses 63000 Administrative Expenses 94500 Total Fixed Expenses 4_27,500 Net Income / (Loss) ($5700007$427500) 142500 Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.) Variable cost per bottleStep by Step Solution
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