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Wildhorse 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
Wildhorse 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 | $1,750,000 | Selling expensesvariable | $108,000 | |||
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Direct materials | 450,000 | Selling expensesfixed | 54,000 | |||
Direct labor | 400,000 | Administrative expensesvariable | 22,000 | |||
Manufacturing overheadvariable | 420,000 | Administrative expensesfixed | 71,000 | |||
Manufacturing overheadfixed | 120,000 |
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