P$18\mathrm{.}3$ Prepare a CVP income statement, and compute break$-$even point, contribution.

margin ratio, margin of safety ratio and sales for target net income.

Jorge Company botiles and distributes B$-$Lite, a diet soft drink. The beverage is sold for $50$ cents

per $16-$ounce bottile to retalers. For the year $2022,$ management estimates the following revenues

and costs.

Instructions

a$.$ Prepare a CVP income statement for $2022$ based on management estimates, Include

columns for per unit and percent of sales information.

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

c$.$ Compute the contribution margin ratio and the margin of satety ratio. $($Round to the nearest

full percent.

d$.$ Determine the sales dollars required to eam net income of $$180,000.$

NOTE: Enter a formula, a cell reference, or a value $($if you are unable to reference a cell$).$

into the yellow shaded input cells.

a$.$

c$.$ Compule the contribution margin rate and the margin of safety ratio. $($Round to the neares

ful percert.$]$

Contubution margin ratio

Uni controution margin

Une seling pnce

Contrbution margin ratio

Mrgin of stefritio

Total sales doilars

Break$-$even saks $($dolars$)$

Margin of atefy $($dollars$)$

Total sales

Margin of satecy rato