q6

Draaksh Corporation sells premlum quality wine for $110 per bottle. Its direct materlals and direct labour costs are $21 and $1200 respectively per bottle. It pays its direct labour employees a wage of $24 per hour. The company performed a regression analysis using the past 12 months' data and established the following monthly cost equation for manufacturing overhead costs using direct labour-hours as the overhead allocation base: y=$154,200+$2250x Draaksh belleves that the above cost estimates will not substantally change for the next fiscal year. Given the suff competition in the wine market, Draaksh budgeted an amount of $34,400 per month for sales promotions; additionally, it has decided to offer a sales commission of $5.75 per bottle to its sales personnel. Administrative expenses are expected to be $25,200 per month. Requlred: 1. Compute the expected total varlable cost per bottle and the expected contribution margin ratio. 2. Compute the annual break-even sales in units and dollars. (Round your Intermediate and final answers to the whole number.)