Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60...
Jorge Company bottles and distributes B-Lite, a diet soft drink.
The beverage is sold for 60 cents per 16-ounce bottle to retailers,
who charge customers 90 cents per bottle. For the year 2017,
management estimates the following revenues and costs.
| Sales | $2,220,000 | Selling expenses—variable | $60,000 | |||
|---|---|---|---|---|---|---|
| Direct materials | 470,000 | Selling expenses—fixed | 50,000 | |||
| Direct labor | 300,000 | Administrative expenses—variable | 62,000 | |||
| Manufacturing overhead—variable | 440,000 | Administrative expenses—fixed | 50,000 | |||
| Manufacturing overhead—fixed | 579,200 |
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 |
enter percentages rounded to 0 decimal places |
% | |
|---|---|---|---|
| Margin of safety ratio |
enter percentages rounded to 0 decimal places |
% |
Homework Answers
Number of units sold = Total sales/Selling price per unit
= $2,220,000/0.60
= 3,700,000
Total variable costs = Direct materials + Direct labor + Variable Manufacturing overhead + Variable Administrative expenses + Variable Selling expenses
= 470,000 + 300,000 + 440,000 + 62,000 + 60,000
= $1,332,000
Variable cost per unit = Total variable cost/Number of units sold
= 1,332,000/3,700,000
= $0.36
Contribution margin per unit = Selling price per unit – Variable cost per unit
= 0.60 - 0.36
= $0.24
Contribution margin ratio = Contribution margin per unit/Selling price per unit
= 0.24/0.60
= 40%
Total fixed costs = Fixed Manufacturing overhead + Fixed Administrative expenses + Fixed Selling expenses
= 579,200 + 50,000 + 50,000
= $679,200
Break even sales in dollars = Fixed cost/Contribution margin ratio
= 679,200/40%
= $1,698,000
Margin of safety in dollar sales = Present sales - Break even sales
= 2,220,000 - 1,698,000
= $522,000
Margin of safety ratio = Margin of safety/Present sales
= 522,000/2,220,000
= 24%
Please ask if you have any query related to the question. Thank you
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Jorge Company bottles and distributes B-Lite, a diet soft drink.
The beverage is sold for 60...
Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60...
Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 90 cents per bottle. For the year 2017, management estimates the following revenues and costs. Sales $2,220,000 Selling expenses—variable $60,000 Direct materials 470,000 Selling expenses—fixed 50,000 Direct labor 300,000 Administrative expenses—variable 62,000 Manufacturing overhead—variable 440,000 Administrative expenses—fixed 50,000 Manufacturing overhead—fixed 579,200 Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places,...
Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50...
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
$1,804,000
Selling expenses—variable
$69,800
Direct materials
428,000
Selling expenses—fixed
65,800
Direct labor
354,000
Administrative expenses—variable
64,920
Manufacturing overhead—variable
310,000
Administrative expenses—fixed
64,900
Manufacturing overhead—fixed
288,000
Prepare a CVP income statement for 2014 based on management’s
estimates.
$
Calculate variable...
Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50...
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 75 cents per bottle. For the year 2017,
management estimates the following revenues and costs.
I feel like I was doing good on this problem and then I got
stuck
Problem 22-2A 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...
Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60...
Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 90 cents per bottle. For the year 2017, management estimates the following revenues and costs Sales $2,064,000 Selling expenses-variable $70,000 45,000 Direct materials 440,000 Selling expenses-fixed 300,000 Administrative expenses-variable Administrative expenses-fixed Direct labor 68,400 Manufacturing overhead-variable Manufacturing overhead-fixed 360,000 52,000 637,400 Your answer is partially correct. Try again Prepare a CVP income statement for 2017...
Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle t...
Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 90 cents per bottle. For the year 2017, management estimates the following revenues and costs. Sales $2,220,000 Selling expenses—variable $60,000 Direct materials 470,000 Selling expenses—fixed 50,000 Direct labor 300,000 Administrative expenses—variable 62,000 Manufacturing overhead—variable 440,000 Administrative expenses—fixed 50,000 Manufacturing overhead—fixed 579,200 Compute the break-even point in (1) units and (2) dollars. (Round answers to 0...
Problem 19-2A Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold...
Problem 19-2A 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 75 cents per bottle. For the year 2017, management estimates the following revenues and costs. Sales $ 1,640,000 Selling expenses-variable $ 50,000 Direct materials 420,000 Selling expenses-fixed 70,000 Direct labor 350,000 Administrative expenses-variable 30,000 Manufacturing overhead-variable 380,000 Administrative expenses-fixed 48,000 Manufacturing overhead-fixed 208,250 Prepare a CVP income statement for 2017 based on management's...
Pharoah Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60...
Pharoah Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 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 $1,800,000 Selling expenses—variable $93,000 Direct materials 410,000 Selling expenses—fixed 65,000 Direct labor 400,000 Administrative expenses—variable 27,000 Manufacturing overhead—variable 420,000 Administrative expenses—fixed 55,000 Manufacturing overhead—fixed 150,000 Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places,...
Problem 19-2A Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold...
Problem 19-2A 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 75 cents per bottle. For the year 2017, management estimates the following revenues and costs. Sales $ 1,800,000 Selling expenses-variable 60,000 Direct materials 380,000 Selling expenses-fixed 50,000 Direct labor 310,000 Administrative expenses- variable 30,000 Manufacturing overhead- variable 300,000 Administrative expenses-fixed 50,000 Manufacturing overhead-fixed 444,000 Prepare a CVP income statement for 2017 based on...
Oriole Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60...
Oriole Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 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 Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $2,040,000 500,000 390,000 410,000 240,000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $107,000 57,000 21,000 162,000 Your answer is correct. Calculate variable cost per bottle. (Round variable cost per bottle...
Problem 19-2A Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold...
Problem 19-2A Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 90 cents per bottle. For the year 2017, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $ 2,052,000 460,000 300,000 430,000 539,300 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $ 60,000 60,000 83,800 58,000 Prepare a CVP Income statement for 2017 based on management's...
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
$1,804,000
Selling expenses—variable
$69,800
Direct materials
428,000
Selling expenses—fixed
65,800
Direct labor
354,000
Administrative expenses—variable
64,920
Manufacturing overhead—variable
310,000
Administrative expenses—fixed
64,900
Manufacturing overhead—fixed
288,000
Prepare a CVP income statement for 2014 based on management’s
estimates.
$
Calculate variable...
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 75 cents per bottle. For the year 2017,
management estimates the following revenues and costs.
I feel like I was doing good on this problem and then I got
stuck
Problem 22-2A 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...
Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 90 cents per bottle. For the year 2017, management estimates the following revenues and costs Sales $2,064,000 Selling expenses-variable $70,000 45,000 Direct materials 440,000 Selling expenses-fixed 300,000 Administrative expenses-variable Administrative expenses-fixed Direct labor 68,400 Manufacturing overhead-variable Manufacturing overhead-fixed 360,000 52,000 637,400 Your answer is partially correct. Try again Prepare a CVP income statement for 2017...
Problem 19-2A 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 75 cents per bottle. For the year 2017, management estimates the following revenues and costs. Sales $ 1,640,000 Selling expenses-variable $ 50,000 Direct materials 420,000 Selling expenses-fixed 70,000 Direct labor 350,000 Administrative expenses-variable 30,000 Manufacturing overhead-variable 380,000 Administrative expenses-fixed 48,000 Manufacturing overhead-fixed 208,250 Prepare a CVP income statement for 2017 based on management's...
Problem 19-2A 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 75 cents per bottle. For the year 2017, management estimates the following revenues and costs. Sales $ 1,800,000 Selling expenses-variable 60,000 Direct materials 380,000 Selling expenses-fixed 50,000 Direct labor 310,000 Administrative expenses- variable 30,000 Manufacturing overhead- variable 300,000 Administrative expenses-fixed 50,000 Manufacturing overhead-fixed 444,000 Prepare a CVP income statement for 2017 based on...
Oriole Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 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 Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $2,040,000 500,000 390,000 410,000 240,000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $107,000 57,000 21,000 162,000 Your answer is correct. Calculate variable cost per bottle. (Round variable cost per bottle...
Problem 19-2A Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 90 cents per bottle. For the year 2017, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $ 2,052,000 460,000 300,000 430,000 539,300 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $ 60,000 60,000 83,800 58,000 Prepare a CVP Income statement for 2017 based on management's...
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