Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

SunlandCompany bottles and distributes B-Lite, a diet soft drink. The beverage is sold for50cents per 16-ounce bottle to retailers, who charge customers75cents per bottle. For

SunlandCompany bottles and distributes B-Lite, a diet soft drink. The beverage is sold for50cents per 16-ounce bottle to retailers, who charge customers75cents per bottle. For the year 2020, 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

image text in transcribed
Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.) Variable cost per bottle $ :| Compute the break-even point in (1) units and (2) dollars. (Round answers to 0 decimal places, e3. 1225.) (1) Compute the break-even point units (2) Compute the breakeven point 35 Compute the contribution margin ratio and the margin of safety ratio. (Round variable costper bottle to 3 decimal places, as. 0.25 and nal answers to 0 decimal places, e.g. 25%.) Contribution margin ratio % Margin of safety ratio % Determine the sales dollars required to earn net income of $160,000. (Round answer to 0 decimal places, as. 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

College Accounting A Practical Approach

Authors: Jeffrey Slater, Debra Good

13th Canadian edition

134616316, 134166698, 9780134632407 , 978-0134166698

More Books

Students also viewed these Accounting questions

Question

Define opportunity cost.

Answered: 1 week ago