Reference no: EM132940955
Sales$1,920,000
Direct materials 410,000
Direct labor 370,000
Manufacturing overhead-variable390,000
Manufacturing overhead-fixed280,000
Selling expenses-variable$147,000
Selling expenses-fixed52,000
Administrative expenses-variable27,000
Administrative expenses-fixed 42400
Ivanhoe 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.
Problem 1: Ive already made a CVP income statement and a variable cost of bottle of .420 need assistance with computing break even point in units and in $ amount, computing the contribution margin ratio and margin of safety ratio