Carla Vista 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 $2,000,000 Selling expenses—variable $109,000Direct materials 550,000 Selling expenses—fixed 58,000Direct labor 400,000 Administrative expenses—variable 21,000Manufacturing overhead—variable 420,000 Administrative expenses—fixed 52,000Manufacturing overhead—fixed 190,000 Prepare a CVP income statement for 2020 based on management’s estimates. Calculate variable cost per bottle. Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit SalesContribution MarginFixed ExpensesSelling ExpensesAdministrative ExpensesTotal Fixed ExpensesNet Income/(Loss)>CARLA VISTA COMPANYCVP Income Statement (Estimated)19000058000 i52000tA20000001500000500000300000 i200000

Income Statement :— It is one of the financial statement that shows profitability of company during…

Answered: beverage is sold for 50 cents per…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Carla Vista 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	$2,000,000	Selling expenses—variable	$109,000
Direct materials	550,000	Selling expenses—fixed	58,000
Direct labor	400,000	Administrative expenses—variable	21,000
Manufacturing overhead—variable	420,000	Administrative expenses—fixed	52,000
Manufacturing overhead—fixed	190,000