Question 9,10

Tyson Company bottles and distributes NO-KAL, a diet soft drink. The beverage is sold for 40 cents per 16-ounce bottle to retailers, who charge customers 60 cents per bottle. At full (100%) plant capacity, management estimates the following revenues and costs: a. Prepare a CVP income statement 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 required to earn net income of $150,000. Cruz Manufacturing's sales slumped badly in 20 times 2. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 600,000 units of product: Net sales $2,400,000: total costs and expenses $2,600,000: and net loss $200,000. Costs and expenses consisted of the following: Management is considering the following independent alternatives for 20 times 3. Increase unit selling price 25% with fixed cost increasing 5% and sales volume (units) decreasing by 10%. Change the compensation of salespersons from fixed annual salaries totaling $210,000 to total salaries of $70,000 plus a 4% commission on net sales. Purchase new automated equipment that will change the proportion between variable and fixed cost of goods sold to 60% variable and 40% fixed