Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 5-3A (Video) (Part Level Submission) Oriole Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce

image text in transcribedimage text in transcribedimage text in transcribed

Problem 5-3A (Video) (Part Level Submission) Oriole 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 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $1,860,000 430,000 400,000 420,000 230,000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $118,000 61,000 27,000 81,000 Compute the break-even point in (1) units and (2) dollars. (Round answers to decimal places, e.g. 1,225.) Compute the break-even point units Compute the break-even point Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 2 decimal places, e.g. 0.25 and final answers to O decimal places, e.g. 25%.) Contribution margin ratio Margin of safety ratio Determine the sales dollars required to earn net income of $240,852. (Round answer to O decimal places, e.g. 1,225.) Required sales dollars

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Auditing Real Issues And Cases

Authors: Michael C. Knapp, Loreen Knapp

5th Edition

032418834X, 978-0324188349

More Books

Students also viewed these Accounting questions

Question

Who should apply a scorecard approach?

Answered: 1 week ago