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Prepare a CVP income statement and compute break-even point, contribution margin ratio, margin of safety ratio, and sales for target net income. P22.3 (LO 3,

image text in transcribed Prepare a CVP income statement and compute break-even point, contribution margin ratio, margin of safety ratio, and sales for target net income. P22.3 (LO 3, 4, 5), AP Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Instructions a. Prepare a CVP income statement for 2022 based on management's estimates. Include columns for per unit and percent of sales information. b. (1) 2,700,000 units b. Compute the break-even point in (1) sales units and (2) sales dollars. c. CM ratio 30% c. Compute the contribution margin ratio and the margin of safety ratio. (Round to nearest full percent.) d. Determine the sales dollars required to earn net income of $180,000

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