Part 2: Exercise 11. All Frute Company bottles and distributes a type of cooking oil. The oil is sold for 60 cents per can to retailers, who charge customers 70 cents per can. For the year 2014, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed Instructions $3,200,000 400,000 500,000 370,000 380,000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses- fixed (a) Prepare a CVP income statement for 2014 based on management's estimates: Sales Variable cost . direct materials $'000 $'000 3200 000 1540000 $120,000 250,000 150,000 100,000 400000 selling direct labour 1- manufacturing OUH variable expenses 500060 370000 120000 1-administrative expenses -variable 150000 Contribution margin 1660000 Fixed cost 730000 Manufacturing OVH fixed 380000 selling expenses fixed 250000 administrative sp fixed 100000 Net income 930000 (b) Compute the break-even point in (1) units and (2) dollars. Unit contribution margin- Break-even point in units= = 2