Utech Company bottles and distributes Livit, 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 2010, management estimates the following revenues and costs.

Instructions(a) Prepare a CVP income statement for 2010 based on management's estimates.(b) Compute the break-even point in (1) units and (2) dollars.(c) Compute the contribution margin ratio and the margin of safety ratio. (Round to full percents.)(d) Determine the sales dollars required to earn net income of$238,000.

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Net sales Direct materials Direct labor Manufacturing overhead- variable Manufacturing overhead- fixed Selling expenses-variable Selling expensesfixed Administrative expenses- variable Administrative expenses- fixed $1,800,000 430,000 352,000 $70,000 65,000 20,000 316,000 60,000 283,000