Answer Happy

Michel bottles and distributes B-Lite, a diet soft drink. Price per
bottle is expected to be

$1.20































For the year 2022, M company management estimates the following
revenues and expenses:









Sales







$2,280,000



Selling expenses - variable



$110,000





Direct materials





540,000



Selling expenses - fixed





65,000





Direct labor





550,000



Administrative expenses - variable



30,000





Manufacturing overhead- variable

480,000



Administrative expenses - fixed



65,000





Manufacturing overhead -fixed

350,000

































































(a)

Prepare a CVP income statement for 2022 based on management
estimates.







(b)

Compute the break-even point in (1) units and (2)
dollars.









(c )

Compute the contribution margin ratio and the margin of safety
ratio.









(d)

Determine the sales dollars required to earn net income of:

$ 150,000