Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is
ID: 2424732 • Letter: J
Question
Jorge 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 78 cents per bottle. For the year 2014, management estimates the following revenues and costs.
Sales
$ 1,805,800
Selling expenses—variable
$ 65,400
Direct materials
428,800
Selling expenses—fixed
65,400
Direct labor
358,300
Administrative expenses—variable
47,386
Manufacturing overhead—variable
310,000
Administrative expenses—fixed
60,200
Manufacturing overhead—fixed
293,000
*(a)
Your answer is partially correct. Try again.
Prepare a CVP income statement for 2014 based on management’s estimates.
JORGE COMPANY
CVP Income Statement (Estimated)
For the Year Ending December 31, 2014
Sales
$ 1805800
Variable Expenses
Cost of Goods Sold
$ 1097100
Selling Expenses
65400
Administrative Expenses
47386
Total Variable Expenses
1209886
Contribution Margin
595914
Fixed Expenses
Cost of Goods Sold
293,000
Selling Expenses
65400
Administrative Expenses
60200
Total Fixed Expenses
418600
Net Income/(Loss)
$
Attempts: 3 of 3 used
Variable Cost per Bottle: $ .34
Attempts: 3 of 3 used
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
Determine the sales dollars required to earn net income of $ 241,100 . (Round answers to 0 decimal places, e.g. 1,225.)
Required sales dollars $______
__
Compute the contribution margin ratio and the margin of safety ratio. (Round answers to 0 decimal places, e.g. 25%.)
Contribution margin ratio
%
Margin of safety ratio
%
Don't show me this message again for the assignment
Jorge 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 78 cents per bottle. For the year 2014, management estimates the following revenues and costs.
Sales
$ 1,805,800
Selling expenses—variable
$ 65,400
Direct materials
428,800
Selling expenses—fixed
65,400
Direct labor
358,300
Administrative expenses—variable
47,386
Manufacturing overhead—variable
310,000
Administrative expenses—fixed
60,200
Manufacturing overhead—fixed
293,000
Jorge 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 78 cents per bottle. For the year 2014, Management estimates the Following revenues ad costsExplanation / Answer
Brekeven in units Fixed Expenses/Contribution margin per unit C 418600/.5-.335 2536970 rounded off units Ans 1 Breakeven in dollars Fixed Expense/Contribution margin ratio 418000/.33 1266667 $ ans 2 Contribution Margin Ratio=Total Contribution Margin/Sales 595914/1805800 0.33 So variable cost= Sales-Cntribution margin per unit.5*(1-.33) 0.335 JORGE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2014 Sales $ 1805800 $1,805,800 Variable Expenses Cost of Goods Sold 1097100 Selling Expenses 65400 Administrative Expenses 47386 Total Variable Expenses 1209886 1209886 Contribution Margin 595914 $595,914 Fixed Expenses Cost of Goods Sold 293000 Selling Expenses 65400 Administrative Expenses 60200 418600 Total Fixed Expenses 418600 $177,314 Net Income/(Loss) $
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.