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 75 cents per bottle. For the year 2017, management estimates the following revenues and costs.

Sales		$1,850,000		Selling expenses—variable		$50,000
Direct materials		430,000		Selling expenses—fixed		50,000
Direct labor		330,000		Administrative expenses—variable		32,500
Manufacturing overhead—variable		360,000		Administrative expenses—fixed		60,000
Manufacturing overhead—fixed		418,500

(a)

Prepare a CVP income statement for 2017 based on management’s estimates.

JORGE COMPANY CVP Income Statement (Estimated) choose the accounting period                                                                      For the Year Ending December 31, 2017December 31, 2017For the Month Ended December 31, 2017
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit				$enter a dollar amount
select an opening name for section one                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit		$enter a dollar amount
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit		enter a dollar amount
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit		enter a dollar amount
select a closing name for section one                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit				enter a total amount for section one
select a summarizing line for the first part                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit				enter a total amount for the first part
select an opening name for section two                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit		enter a dollar amount
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit		enter a dollar amount
select an income statement item                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit		enter a dollar amount
select a closing name for section two                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit				enter a total amount for section two
select a closing name for this statement                                                                      Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit				$enter a total net income or loss amount

Answer 1

1850000 Required: A Jorge Company CVP Income Statement (Estimated) For the Year Ending December 31, 2017 Sales Variable expenses: Cost of goods sold 1120000 Selling expenses 50000 Administrative expenses 32500 Total Variable expenses Contribution margin Fixed expenses: Cost of goods sold 418500 Selling expenses 50000 Administrative expenses 60000 Total Fixed expenses Net Income 1202500 647500 528500 119000