Answer | ||||||
A) |
||||||
Sales | $1,800,000 | |||||
Variable expenses | ||||||
cost of goods sold | $ 990,000 | |||||
Selling expenses | $ 60,000 | |||||
Administrative expense | $ 30,000 | |||||
total variable expense | $1,080,000 | |||||
Contribution margin | $ 720,000 | |||||
fixed expenses | ||||||
cost of goods sold | $ 444,000 | |||||
Selling expenses | $ 50,000 | |||||
Administrative expense | $ 50,000 | |||||
total fixed expense | $ 544,000 | |||||
Net income | $ 176,000 | |||||
b-1) | Variable cost per bottle | |||||
Number of bottles = 1,800,000/.50 | ||||||
3,600,000 | ||||||
1,080,000/3,600,000 | ||||||
0.30 | answer | |||||
b2) | Contribution margin per unit = 72,0000/3,600,000 | |||||
0.20 | ||||||
Break even units = fixed cost/contribution margin per unit | ||||||
544000/.20 | ||||||
2,720,000 | units | answer | ||||
Break even point dollars = 2720000*.5 | ||||||
1,360,000 | answer | |||||
c) | Contribution margin ration = | .20/.5 | ||||
0.40 | ||||||
40% | answer | |||||
margin of safety = actual sales - BEP sales | ||||||
1,800,000-1,360,000 | ||||||
$ 440,000 | ||||||
margin of safety ratio = 440,000/1,800,000 | ||||||
24% | answr | |||||
d) | Sales dollar required = ( fixed cost+target profit)/contribution margin ratio | |||||
(544000+238000)/40% | ||||||
$ 1,955,000 | answer | |||||
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...
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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...
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