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		$1,850,000		Selling expensesvariable		$95,000
Direct materials		470,000		Selling expensesfixed		54,000
Direct labor		340,000		Administrative expensesvariable		30,000
Manufacturing overheadvariable		360,000		Administrative expensesfixed		109,000
Manufacturing overheadfixed		170,000

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) units and (2) dollars. (Round answers to 0 decimal places, e.g. 1,225.)

(1)		Compute the break-even point		Units ___________
(2)		Compute the break-even point		$ Break-even point in Dollars $_____

Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 3 decimal places, e.g. 0.25 and final answers to 0 decimal places, e.g. 25%.)

Contribution margin ratio			________%
Margin of safety ratio			________%

Determine the sales dollars required to earn net income of $240,000. (Round answer to 0 decimal places, e.g. 1,225.)

Required sales dollars

$__________