p5 2a prepare a cvp income statement compute break even point contribution margin ra 3733551

P5-2A Prepare a CVP income statement, compute break-even point,contribution margin ratio, margin of safety ratio and sales fortarget net income Jorge Company bottles and distributes B-Lite, adiet soft drink. The beverage is sold for 50 cents per 16-ouncebottle to retailers, who charge customers 75 cents per bottle. Forthe year 2017, management estimates the following revenues andcosts. Sales $1,800,000 Selling expenses – variable $70,000 Directmaterials 430,000 Selling expenses – fixed 65,000 Direct labor360,000 Administrative expenses – variable 20,000 Manufacturingoverhead- variable 380,000 Administrative expenses – fixed 60,000Manufacturing overhead -fixed 280,000

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