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Jorge Company bottles and distributes B-Lit

problem 18-2A
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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 80 cents per bottle. For the year 2014, management estimates the following revenues and costs.

Sales $ 1,807,900 Selling expenses—variable $ 68,400
Direct materials 427,000 Selling expenses—fixed 67,400
Direct labor 355,600 Administrative expenses—variable 48,293
Manufacturing overhead—variable 312,000 Administrative expenses—fixed 64,900
Manufacturing overhead—fixed 292,600

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Prepare a CVP income statement for 2014 based on management’s estimates.

JORGE COMPANY
CVP Income Statement (Estimated)
For the Year Ending December 31, 2014
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http://edugen.wiley.com/edugen/art2/common/pixel.gif $ http://edugen.wiley.com/edugen/art2/common/pixel.gif
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http://edugen.wiley.com/edugen/art2/common/pixel.gif $ http://edugen.wiley.com/edugen/art2/common/pixel.gif

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Calculate variable cost per bottle.(Round variable cost per bottle to 2 decimal places, e.g. 0.25.)

Variable cost per bottle $ http://edugen.wiley.com/edugen/art2/common/pixel.gif

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Compute the break-even point in (1) units and (2) dollars.(Round answers to 0 decimal places, e.g. 1,225.)

(1) Compute the break-even point http://edugen.wiley.com/edugen/art2/common/pixel.gif units
(2) Compute the break-even point $ http://edugen.wiley.com/edugen/art2/common/pixel.gif

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Compute the contribution margin ratio and the margin of safety ratio.(Round answers to 0 decimal places, e.g. 25%.)

Contribution margin ratio http://edugen.wiley.com/edugen/art2/common/pixel.gif %
Margin of safety ratio http://edugen.wiley.com/edugen/art2/common/pixel.gif %

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Determine the sales dollars required to earn net income of $ 241,100 .(Round answers to 0 decimal places, e.g. 1,225.)

Required sales dollars $ http://edugen.wiley.com/edugen/art2/common/pixel.gif

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