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

image text in transcribedimage text in transcribed

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.

image text in transcribedimage text in transcribedimage text in transcribed
Sunland Company bottles and distributes B-Lite, 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 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 220,000Prepare a CVP income statement for 2020 based on management's estimates. SUNLAND COMPANY CVP Income Statement (Estimated) $ $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

Financial Accounting

Authors: Robert Kemp, Jeffrey Waybright

5th edition

134727797, 9780134728643 , 978-0134727790

More Books

Students also viewed these Accounting questions

Question

6. How can hidden knowledge guide our actions?

Answered: 1 week ago

Question

7. How can the models we use have a detrimental effect on others?

Answered: 1 week ago