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 77 cents per bottle. For the year 2014, management estimates the following revenues and costs.
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1) Calculate variable cost per bottle. (Round variable cost per bottle to 2 decimal places, e.g. 0.25.
2) Compute the break-even point in (1) units and (2) dollars.(Round answers to 0 decimal places, e.g. 1,225.)
3) Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 2 decimal places, e.g. 0.25 and final answers to 0 decimal places, e.g. 25%.)
4) Determine the sales dollars required to earn net income of $240,910. (Round answers to 0 decimal places, e.g. 1,225.)
| Sales |
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$1,816,000 |
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Selling expenses-variable |
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$66,600 |
| Direct materials |
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427,000 |
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Selling expenses-fixed |
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65,200 |
| Direct labor |
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353,000 |
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Administrative expenses-variable |
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55,120 |
| Manufacturing overhead-variable |
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315,000 |
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Administrative expenses-fixed |
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62,000 |
| Manufacturing overhead-fixed |
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292,000 |
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