Problem 22-2A

Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 90 cents per bottle. For the year 2017, management estimates the following revenues and costs. Sales $2,220,000 Selling expensesvariable $60,000 Direct materials 470,000 Selling expensesfixed 50,000 Direct labor 300,000 Administrative expensesvariable 62,000 Manufacturing overheadvariable 440,000 Administrative expensesfixed 50,000 Manufacturing overheadfixed 579,200 Prepare a CVP income statement for 2017 based on managements estimates.