Reference no: EM132872143

Question - Cullumber 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 2020, management estimates the following revenues and costs.

Sales $1,750,000

Selling expenses-variable $113,000

Direct materials 460,000

Selling expenses-fixed 50,000

Direct labor 390,000

Administrative expenses-variable 27,000

Manufacturing overhead-variable 410,000

Administrative expenses-fixed 77,500

Manufacturing overhead-fixed 100,000

Required - Compute a CVP income statement for 2020 based on management's estimates.