Reference no: EM132616280

Question - Wildhorse 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 $1,850,000

Selling expenses-variable $95,000

Direct materials 470,000

Selling expenses-fixed 54,000

Direct labor 340,000

Administrative expenses-variable 30,000

Manufacturing overhead-variable 360,000

Administrative expenses-fixed 109,000

Manufacturing overhead-fixed 170,000

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