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Please with explanation so i can understand it Clipboard Font Alignment S20 X B C D E F G H J K L No co
Please with explanation so i can understand it
Clipboard Font Alignment S20 X B C D E F G H J K L No co own Laska Company bottles and distributes L-Lite, a diet soft drink. The beverage is sold fo $5.20 to retailers, who charge customer $10.40 per bottle. For year 2019, management estimates the following revenues and costs: Sales $5,200,000 Direct Materials 1,196,000 Direct Labor 1,040,000 MoH - Variable 1,092,000 MoH - Fixed 832,000 Selling Expense - Variable 208,000 Selling Expense - Fixed 156,000 Admin. Expense - Variable 52,000 Admin. Expense - Fixed 156,000 Instructions 1. Prepare a CVP Income Statement for 2019 based on Laska's management's estimates 2. Compute the break-even point in (1) units and (2) dollars 3. Compute contribution margin ratio (round to 2 decimals.). 4. Compute margin of safety ratio (round to 2 decimals) 5. Determine sales dollars required to earn Net Income $780,000 6. Compute degree of operating leverage and comment on how it will change (increase or decrease) if the company replaces a part of direct labor with machinery. Explain. 1. Youe name and ID 2. Solving Ready 2 tea 3 SM XStep by Step Solution
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