Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need some help with the break-even question on the last photo, thanks! Sandhill Company bottles and distributes B-Lite, a diet soft drink. The beverage is
Need some help with the break-even question on the last photo, 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. {and variable 03wa to 3 decimal places. 2.3. 0.25.1.) Variable cost per bottle $ eTextbook and Media Attempts: 1 of5 u5ed (b2) Compute the breakeven point in [1} sales units and {2) sales dollars. [Roundansmm to 0 dednml' places. as, 1,225.) {1} Break-even point l units {2} Breakeven point $ lStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started