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Part C: Calculate the expected costs when production is5,900units. Problem 19-2A (Part Level Submission) Jorge Company bottles and distributes B-Lite, a diet soft drink. The
Part C: Calculate the expected costs when production is5,900units.
Problem 19-2A (Part Level Submission) 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 78 cents per bottle. For the year 2014, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overheadvariable Manufacturing overheadfixed $1,807,700 429,500 357,100 313,700 285,100 Selling expensesvariable Selling expensesfixed Administrative expensesvariable Administrative expensesfixed (a) Your answer is correct. Prepare a CVP income statement for 2014 based on management's estimates. JORGE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2014 $ Sales 1807700 Variable Expenses $ 1100300 Selling Expenses 68000 Administrative Expenses 24782 Total Variable Expenses 1193082 Contribution Margin 614618 Fixed Expenses Cost of Goods Sold 285100 Selling Expenses 66400 Administrative Expenses 60500 Total Fixed Expenses 412000 $68,000 66,400 24,782 60,500 $ Net Income/(Loss) 202618 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO VIDEO Attempts: 1 of 3 used (b) Your answer is correct. Calculate variable cost per bottle. (Round variable cost per bottle to 2 decimal places, e.g. 0.25.) $ Variable cost per bottle 0.33 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO VIDEO Attempts: 1 of 3 used (c) Your answer is correct. Compute the break-even point in (1) units and (2) dollars. (Round answers to 0 decimal places, e.g. 1,225.) (1) Compute the break-even point 2423529 (2) Compute the break-even point 1211765 units $ Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO VIDEO Attempts: 1 of 3 used (d) Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 2 decimal places, e.g, 0.25 and final answers to 0 decimal places, e.g. 25%.) Contribution margin ratio % Margin of safety ratio % Click if you would like to Show Work for this question: LINK TO TEXT Open Show Work LINK TO VStep by Step Solution
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