Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 of 1 -/1 E Sales Sheridan Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per

image text in transcribed
image text in transcribed
image text in transcribed
Question 1 of 1 -/1 E Sales Sheridan 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. $1,980,000 Selling expenses-variable $79,000 Direct materials 500,000 Selling expenses-fixed 56,000 Direct labor 380,000 Administrative expenses-variable 27,000 Manufacturing overhead-variable 400,000 Administrative expenses-fixed 179,500 Manufacturing overhead-fixed 210,000 Prepare a CVP income statement for 2020 based on management's estimates. SHERIDAN COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2020 Sales $ 1980000 Variable Expenses Administrative Expenses $ 27000 Selling Expenses 79000 Cost of Goods Sold Total Variable Expenses - Contribution Margin Cost of Goods Sold Total Variable Expenses Contribution Margin Fixed Expenses Administrative Expenses Selling Expenses Cost of Goods Sold Total Fixed Expenses Net Income/(Loss) e Textbook and Media Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.) Variable cost per bottle $ e Textbook and Media Compute the break-even point in (1) units and (2) dollars. (Round answers to decimal places, e.g. 1,225.) (1) units Compute the break-even point Compute the break-even point (2) $ eTextbook and Media Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 3 decimal places, e.g. 0.25 and final answers to 0 decimal places, e.g. 25%.) Contribution margin ratio %6 Margin of safety ratio % e Textbook and Media Determine the sales dollars required to earn net income of $150,000. (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

The BRC Global Standard For Food Safety A Guide To A Successful Audit

Authors: Ron Kill

2nd Edition

0470670657, 978-0470670651

More Books

Students also viewed these Accounting questions