Problem 18-2A (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 75 cents per bottle. For the year 2017, management estimates the following revenues and costs.

Sales		$1,800,000		Selling expensesvariable		$60,000
Direct materials		380,000		Selling expensesfixed		50,000
Direct labor		310,000		Administrative expensesvariable		30,000
Manufacturing overheadvariable		300,000		Administrative expensesfixed		50,000
Manufacturing overheadfixed		444,000

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

Variable cost per bottle

2) calculate break even point in units and dollars

3) calculate contribution margin ratio