W T ECTU VW De Car o m the IPUILLIEU VILL can connues. Uns you need to call its SCF 187 - I X fc A A B C D 1 P5-2A Prepare a CVP Income statement compute break-even point contribution margin ratio, margin of safety ratio 2 and sales for target net income 3 Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle 4 to retailers, who charge customers 75 cents per bottle. For the year 2017, management estimates the following revenues 5 and costs Sales $1,800,000 Seling expenses - variable $70,000 Direct materials 430,000 Seling expenses - fxed 65,000 Direct labor 360,000 Administrative expenses - variable 20,000 Manufacturing overhead-variable 380,000 Administrative expenses - fixed 60,000 Manufacturing overhead -fixed 280,000 10 12 Instructions 13(a) Prepare a CVP income statement for 2017 based on management estimates. (show column for total amounts only.) 14 (6) Compute the break-even point in (1) units and (2) dollars. 15 (c) Compute the contribution margin ratio and the margin of safety ratio. (Round to the nearest full percent.) 16 (d) Determine the sales dollars required to earn net income of $180,000 17 NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". 21(a) Prepare a CVP Income statement for 2017 based on management estimates (show column for total amounts only) Value JORGE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2017 Sales Variable expenses Cost of goods sold Seling expenses Value Administrative expenses Value Total variable expenses 05-5 P52A CD-51 RutoSave 00 ExcelTemplateAssignment_Chos (1) Protected View - Excel Search ale Home Insert Page Layout Formulas Data Review View Help DYMO Label QuickBooks PROTECTED VIEW Be careful--files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enat A B C D E Total variable expenses Contribution margin Fixed expenses Cost of goods sold Selling expenses Administrative expenses Total fixed expenses Net income Value Value Value (b) Compute the break-even point in (1) units and (2) dollars. (b)(1) Break-even point in units Unit selling price Unit variable costs Unit contribution margin Value Value 2 Fixed costs Unit contribution margin Break-even point in units Value Value (b)(2) Break-even point in dollars Break-even point in units Unit selling price Break-even point in dollars Value Value 59 (c) Compute the contribution margin ratio and the margin of safety ratio. (Round to the nearest full percent.) TE5-9 P5-2A CD-5 | * Type here to search AB CDEFGHIJKL 59 (c) Compute the contribution margin ratio and the margin of safety ratio. (Round to the nearest full percent) Contribution margin ratio Unit contribution margin Unit selling price Contribution margin ratio Value Value Margin of safety ratio Total sales Break-even sales Margin of safety (dollars) Total sales Margin of safety ratio Value Value Value Value Value 74 (d) Determine the sales dollars required to earn net income of $180,000. 76 70 Sales dolans required to earn target Income Fixed costs Value Target Income Value Total foced cost target Income Contribution margin ratio Sales dollars required at 85 After you have completed P5-2A, consider the following additional question 861. Assume that the unit selling price per bottle changed to $0.60 each, and fixed manufacturing costs increased to $300,000. Show Impact of these changes on calculations. E-9 P5-2A CD- 5 8 ten