# Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents p

Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 90 cents per bottle. For the year 2017, management estimates the following revenues and costs.

Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.)

Sales

\$2,052,000

Selling expenses—variable

\$60,000

Direct materials

460,000

Selling expenses—fixed

60,000

Direct labor

300,000

83,800

430,000

58,000

539,300

Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.) Variable cost per bottle

\$enter variable cost per bottle rounded to 3 decimal places

(1)

Compute the break-even point

enter the break-even point in units rounded to 0 decimal places

units

(2)

Compute the break-even point

\$enter the break-even point in dollars rounded to 0 decimal places

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

Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 3 decimal places, e.g. 0.25 and final answers to 0 decimal places, e.g. 25%.)

Contribution margin ratio

enter percentages rounded to 0 decimal places

%

Margin of safety ratio

enter percentages rounded to 0 decimal places

%

Determine the sales dollars required to earn net income of \$32,200. (Round answer to 0 decimal places, e.g. 1,225.)

Required sales dollars

\$enter the sales dollars required to earn net income of \$32,200 rounded to 0 decimal places