Part-1 | ||
JORGE COMPANY | ||
CVP Income Statement (Estimated) | ||
Total | Per Unit | |
Sales | $18,00,000 | $0.50 |
Less: Variable Expenses : | ||
Direct materials | $4,30,000 | $0.12 |
Direct labor | $3,60,000 | $0.10 |
Manufacturing overhead—variable | $3,80,000 | $0.11 |
Selling expenses—variable | $70,000 | $0.02 |
Administrative expenses—variable | $20,000 | $0.01 |
Total Variable Costs | $12,60,000 | $0.35 |
Contirbution Margin | $5,40,000 | $0.15 |
Less: Fixed Expenses : | ||
Manufacturing overhead—fixed | $2,80,000 | |
Selling expenses—fixed | $65,000 | |
Administrative expenses—fixed | $60,000 | |
Total Fixed Expenses | $4,05,000 | |
Net Income | $1,35,000 | |
*Units = $1800000 /$0.50= 36,00,000 |
Part-2 |
Variable cost per bottle= $0.35 |
Paart-3 | |
Calculation of Break even points: | |
Total Fixed Expenses (A) | $4,05,000 |
Contirbution Margin Per unit (B) | $0.15 |
Break even point (Units) C =A/B | $27,00,000 |
Sales Price Per unit (D) | $0.50 |
Break even point ($) =C*D | $13,50,000 |
Part-4 | |
Calculation of contribution margin ratio and the margin of safety ratio | |
Contirbution Margin Per unit (A) | $0.15 |
Sales Price Per unit (B) | $0.50 |
Contribution margin ratio =A/B | 30% |
Break even point ($) (A) | $ 1,350,000 |
Actual Sales (B) | $ 1,800,000 |
Margin of safety ratio = (B-A)/B | 25% |
Part5 | |
Calculation of sales dollars required to earn net income of $180,000. | |
Total Fixed Expenses (A) | $ 405,000 |
Required Profits (B) | $ 180,000 |
Contirbution Margin Per unit C) | $ 0.15 |
Required Sales(Units) D =(A+B)/C | 3,900,000 |
Sales Price Per unit (D) | $ 0.50 |
Required Sales ($) =C*D | $ 1,950,000 |
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4,5), AN Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold...
Problem 11-2 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 Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $1,800,000 430,000 360,000 380,000 280,000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $70,000 65,000 20,000 60,000 Prepare a CVP income statement for 2017 based on management's estimates. JORGE...
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 Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $1,800,000 Selling expenses-variable 410,000 Selling expenses-fixed 400,000 Administrative expenses-variable 420,000 Administrative expenses-fixed 150,000 $93.000 65,000 27,000 55,000 Prepare a CVP income statement for 2020 based on management's estimates. PHAROAH COMPANY CVP...
Problem 11-2 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. $1,800,000 $70,000 Sales Selling expenses-variable Direct materials 430,000 Selling expenses-fixed 65,000 Direct labor Administrative expenses-variable 360,000 20,000 Manufacturing overhead-variable 380,000 Administrative expenses-fixed 60,000 Manufacturing overhead-fixed 280,000 Your answer is partially correct. Try again. Prepare a CVP income statement...
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...
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...
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 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 battles 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 Your answer is partially correct. Try again. Prepare a CVP income statement for 2017...
Problem 18-03A 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 2020, management estimates the following revenues and costs. $70,000 65,000 Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $1,800,000 430,000 360,000 380,000 280,000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed 20,000 60,000 Prepare a CVP income statement for 2020 based on management's estimates. JORGE...
Cullumber 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 2020, management estimates the following revenues and costs. Sales $1,750,000 Selling expenses—variable $113,000 Direct materials 460,000 Selling expenses—fixed 50,000 Direct labor 390,000 Administrative expenses—variable 27,000 Manufacturing overhead—variable 410,000 Administrative expenses—fixed 77,500 Manufacturing overhead—fixed 100,000 a) Prepare a CVP income statement for 2020 based on management’s estimates. b) variable...