Question No.2 (18 marks; 30 - 40 minutes) 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 2 Fixed cents per bottle. For the year 2017, management estimates the followin revenues and costs. Variable Total Net sales $1,800,000 Direct materials $430,000 430,000 Direct labor 352,000 352,000 Manufacturing overhead 316,000 $283,000 599,000 Selling expenses 70,000 135,000 Administrative expenses 20,000 80,000 65,000 60,000 Instructions a. Prepare a CVP income statement for 2017 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