(a) what is The ContnbL × edugen.wileyplus.com/edugen/student/mainfr.uni wileyPL
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(a) what is The ContnbL × edugen.wileyplus.com/edugen/student/mainfr.uni wileyPLLUS Contact UsI Los.Out Weygandt, Managerial Accounting, 7e MANAGEMENT ACCOUNTING (ACCT 2120) Gradebook ORION Downloadable eTexthook nt CALCULATOR FULL SCREEN PRINTER VERSIONBACK Problem 5-2A (Part Level Submission) lorge Company bottles and distributes 8-Lite, a diet soft drink. year 2017, management estimates the following revenues and costs Sales Direct materials Direct labor Manufacturing overhead-variable The beverage is sold for so cents per 16-ounce bottle to retailers, whe charge customers 75 cents per bottl. For the $50,000 50,000 12,500 60,000 $1,850,000 Selling expenses-variable 430,000 Selling expenses-flxed 330,000 Administrative expenses variable 32.500 360,000 Administrative expenses-lxed 418,500 Manufacturing overhead-flixed (a) Your answer is partialy correct. Try again Prepare a CVP income statement for 2027 based or management's estimates JORGE COMPANY Income Statement (Estimated) 19 PMExplanation / Answer
Answer 2.
Selling Price per bottle = $0.50
Variable Cost per bottle = $0.325
Contribution Margin per unit = Selling Price per bottle - Variable Cost per bottle
Contribution Margin per unit = $0.50 - $0.325
Contribution Margin per unit = $0.175
Break even Point (in Units) = Fixed Cost / Contribution Margin per Unit
Fixed Cost = Fixed Manufacturing Overhead + Fixed Selling Expense + Fixed Administrative Expense
Fixed Cost = $418,500 + $50,000 + $60,000
Fixed Cost = $528,500
Break even Point (in Units) = 528,500 / 0.175
Break even Point (in Units) = 3,020,000 Units
Break even Point (in Dollars) = Fixed Cost / Contribution Margin Ratio
Contribution Margin Ratio = Contribution Margin / Selling Price * 100
Contribution Margin Ratio = 0.175 / 0.50 * 100
Contribution Margin Ratio = 35%
Break even Point (in Dollars) = 528,500 / 0.35
Break even Point (in Dollars) = $1,510,000
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