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Westside Winery Ltd. The company bottles wine from bulk wine purchases They are preparing next year's budget and have gathered the following costing information Variable
Westside Winery Ltd. The company bottles wine from bulk wine purchases They are preparing next year's budget and have gathered the following costing information Variable Cost Budget Information per Bottle Average wine cost 4.50 Bottle and packaging 2.50 Bottling labour 1.60 Shipping and delivery 2.00 The company also pays a sales commission of 10% to staff on sales revenue. Fixed Costs per Budget Information Month Salaries 8,500 Building lease 3,000 Office supplies, misc. 200 Utilities 1,500 Their annual sales budget targets and pricing are as follows. Average Price/Unit $ 17.00 Quantity 72,000 Annual Budget Targets Bottled wine sale Required: 1. Prepare the company's budget income statement for 2022 in a Contribution Margin format. Include the $/unit and percent of sales columns What is the contribution marain per unit and the contribution margin ratio? tv ZA Building lease Office supplies, misc. Utilities 8,500 3,000 200 1,500 Their annual sales budget targets and pricing are as follows. Annual Budget Targets Bottled wine sales Quantity 72,000 Average Price/Unit $ 17.00 Required: 1. Prepare the company's budget Income statement for 2022 in a contribution Margin format. Include the $/unit and percent of sales columns. What is the contribution margin per unit and the contribution margin ratio? 2. The manager is approached by a local business to offer its staff a unique seasonal gift bottle of wine. . The gift bottles would not have any sales commissions or shipping and delivery ft bottle wine is more expensive and would cost $5.50 for each bottle; all other costs are the same. one-time deal is estimated at 100 bottles. a. If the manager wants to earn a 20% contribution margin on the order, what price would he charge per bottle? b. What would the total contribution be for the seasonal gift bottle order
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