Pharoah 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 2020, management estimates the following revenues and costs.

Sales		$1,850,000		Selling expensesvariable		$102,000
Direct materials		490,000		Selling expensesfixed		57,000
Direct labor		330,000		Administrative expensesvariable		23,000
Manufacturing overheadvariable		350,000		Administrative expensesfixed		111,500
Manufacturing overheadfixed		220,000

a. Prepare a CVP income statement for 2020 based on managements estimates.

b. Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.)

c. Compute the break-even point in (1) units and (2) dollars. (Round answers to 0 decimal places, e.g. 1,225.)

d. Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 3 decimal places, e.g. 0.25 and final answers to 0 decimal places, e.g. 25%.)

e. Determine the sales dollars required to earn a net income of $180,000. (Round answer to 0 decimal places, e.g. 1,225.)