Utech Company bottles and distributes Livit, 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 2008, management estimates the following revenues and costs.
- Net sales $1,800,000
- Direct materials 430,000
- Direct labor 352,000
- Manufacturing overhead - variable 316,000
- Manufacturing overhead - fixed 283,000
- Selling expenses - variables 70,000
- Selling expenses - fixed 65,000
- Administrative expenses - variables 20,000
- Administrative expenses - fixed 60,000