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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. For the
Wildhorse Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales $1,750,000 Selling expenses-variable $108,000 Direct materials 450,000 Selling expenses-fixed 54,000 Direct labor 400,000 Administrative expenses-variable 22,000 Manufacturing overhead-variable 420,000 Administrative expenses-fixed 71,000 Manufacturing overhead-fixed 120,000 Compute the contribution margin ratio and the margin of safety ratio. Contribution margin ratio Margin of safety ratio 20 % %
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