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please answer asap its only 2 questions! Sandhill Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per
please answer asap its only 2 questions!
Sandhill Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs Sales $1,800,000 $87,000 Selling expenses--variable Selling expenses-fixed Administrative expenses-variable 61,000 Direct materials 420,000 23,000 400,000 Direct labor Manufacturing overhead--variable 420,000 Administrative expenses--fixed 99,000 Manufacturing overhead-fixed 110,000 Prepare a CVP income statement for 2022 based on management's estimates. (Round per unit answers to 3 decimal places, es 0.251.) SANDHILL COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2022 Total Per Unit 1800000 $ 6 Sales Variable Expenses Cost of Goods Sold 1240000 Selling Expenses B7000 Administrative Experises 23000 Total Variable Expenses : 1350000 45 itribution Margin 450000 $ 15 d Expenses nufacturing Overhead 110000 i Ing Expenses 61000 ninistrative Expenses : 99000 S Fixed Expenses 270000 Income (Loss) 180000 Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, eg. 0.2 Variable cost per bottle $ Blossom Corp's sales slumped badly in 2022. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 505,500 units of product: sales $2,527,500, total costs and expenses $2,611,625, and net loss $84,125. Costs and expenses consisted of the following amounts Total Variable Fixed $2,146,565 $1,733.865 $412,700 Cost of goods sold Selling expenses Administrative expenses 252,750 93,012 159,738 212,310 68.748 143,562 $2,611,625 $1,895,625 $716,000 Management is considering the following independent alternatives for 2023 1 2. Increase the unit selling price 25% with no change in total costs, total expenses, and sales volume. Change the compensation of sales personnel from fixed annual salaries totaling $151,650 to total salaries of $60,660 plus a 5% commission on sales. All other total costs, total expenses, and total sales remain unchanged. Compute the break-even point in sales dollars for 2022. Break-even point $ 2864000 Compute the contribution margin ratio under each of the alternative courses of action. Contribution margin ratio for alternative 1 30 % Contribution margin ratio for alternative 2 % Compute the break-even point in sales dollars under each of the alternative courses of a Break-even point for alternative 1 $ Break-even point for alternative 2 $ Which course of action do you recommend? Alternative 1 Step by Step Solution
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