P19-1 Prepare a CVP income statement compute break-even point costribution margit ratio, margin of safety ratio and sales for larger net income Jorge 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 $1,800,000 Selling expenses - variable Direct materials 430,000 Selling expenses. fixed Direct labor 360,000 Administrative expenses - variable Manufacturing overhead- variable 380,000 Administrative expenses - fixed Manufacturing overhead -fixed 280,000 70,000 65,000 20,000 60,000 Instructions (a) Prepare a CVP income statement for 2017 based on management estimates. (show column for total amounts only.) (b) Compute the break-even point in (1) units and (2) dollars. (c) Compute the contribution margin ratio and the margin of safety ratio. (Round to the nearest full percent.) (d) Determine the sales dollars required to earn net income of $180,000, NOTE: Enter a number in cells requesting a value: enter either a number or a formula in cells with a "?". (a) Prepare a CVP income statement for 2017 based on management estimates. (show column for total amounts only.) Per Unit Number of Units Value ? Value JORGE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2017 Sales Variable expenses Cost of goods sold Direct materials Value Direct labor Value Mig O/H - Variable Value Total Selling expenses Value Administrative expenses Value Total variable expenses Contribution margin Fixed expenses Cost of goods sold Mitg O/H - Fixed Value Selling expenses Value Administrative expenses Value Total fixed expenses Net income (b) Compute the break-even point in (1) units and (2) dollars. (b)(1) Break-even point in units Unit selling price Unit variable costs Unit contribution margin Value Value Fixed costs Unit contribution margin Break-even point in units Value Value (b)2) Break-even point in dollars Break-even point in units Unit selling price Break-even point in dollars Value Value (c) Compute the contribution margin ratio and the margin of safety ratio. (Round to the nearest full percent.) Value Contribution margin ratio Unit contribution margin Unit selling price Contribution margin ratio Value Value Value Margin of safety ratio Total sales Break-even sales Margin of safety (dollars) Total sales Margin of safety ratio Value Value Value (d) Determine the sales dollars required to earn net income of $180,000 Value Value Sales dollars required to earn target income Fixed costs Target income Total fixed cost + target income Contribution margin ratio Sales dollars required