# Problem 11-2 Bramble Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold...

Problem 11-2

Bramble 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 75 cents per bottle. For the year 2017, management estimates the following revenues and costs.
 Sales \$1,840,000 Selling expenses—variable \$60,000 Direct materials 390,000 Selling expenses—fixed 55,000 Direct labor 320,000 Administrative expenses—variable 34,000 Manufacturing overhead—variable 300,000 Administrative expenses—fixed 46,000 Manufacturing overhead—fixed 417,000
Prepare a CVP income statement for 2017 based on management’s estimates.
Compute the break-even point in (1) units and (2) dollars.
 (1) Compute the break-even point units (2) Compute the break-even point \$
Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 3 decimal places, e.g. 0.255 and final answers to 0 decimal places, e.g. 25%.)
 Contribution margin ratio % Margin of safety ratio %
Determine the sales dollars required to earn net income of \$254,000.
 Required sales dollars \$

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