Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sunland Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the

image

Sunland Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales $1,800,000 Selling expenses-variable $93,000 Direct materials 410,000 Selling expenses-fixed 55,000 Direct labor 400,000 Administrative expenses-variable 27,000 Manufacturing overhead-variable 420,000 Administrative expenses-fixed 85,000 Manufacturing overhead-fixed 220,000 Prepare a CVP income statement for 2022 based on management's estimates. (Round per unit answers to 3 decimal places, e.g. 0.251.) eTextbook and Media $ SUNLAND COMPANY CVP Income Statement (Estimated) Total Per Unit Pe $ $ Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.) Variable cost per bottle eTextbook and Media $ Compute the break-even point in (1) sales units and (2) sales dollars. (Round answers to 0 decimal places, e.g. 1,225.) (1) Break-even point units (2) Break-even point $ eTextbook and Media Compute the contribution margin ratio and the margin of safety ratio. Contribution margin ratio Margin of safety ratio eTextbook and Media % % Determine the sales dollars required to earn net income of $160,000. Required sales $ eTextbook and Media

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

Managerial Accounting Tools for business decision making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

6th Edition

978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895

More Books

Students also viewed these Accounting questions