Question $5$: Cost Volume Profit Analysis $($CVP$)$

P$22-2$A Hytek Company bottles and distributes Livit, 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

$2012,$ management estimates the following revenues and costs.

Instructions

$($a$)$ Prepare a CVP income statement for $2012$ based on management's estimates.

$($b$)$ Compute the break$-$even point in $(1)$ units and $(2)$ dollars.

$($c$)$ Compute the contribution margin ratio and the margin of safety ratio. $($Round to full percents.$)$

$($d$)$ Determine the sales dollars required to earn net income of $$238,000.$