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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 2025, 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 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) sales units and (2) sales dollars. (Round answers to 0 decimal places, e.g. 1,225.) (1) Break-even point units (2) Break-even point $ Compute the contribution margin ratio and the margin of safety ratio. Contribution margin ratio % Margin of safety ratio % Determine the sales dollars required to earn net income of $200,000. Required sales $
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