Blossom Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $1,850,000 460,000 340,000 Administrative expenses-variable 360,000 Administrative expenses-fixed 260,000 Selling Selling expenses-fixed expenses-variable Your answer is partially correct. $111.000 54,000 24,000 102,250 Prepare a CVP income statement for 2022 based on management's estimates. (Round per unit answers to 3 decimal places, e.g. 0.251)
Blossom Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $1,850,000 460,000 340,000 Administrative expenses-variable 360,000 Administrative expenses-fixed 260,000 Selling Selling expenses-fixed expenses-variable Your answer is partially correct. $111.000 54,000 24,000 102,250 Prepare a CVP income statement for 2022 based on management's estimates. (Round per unit answers to 3 decimal places, e.g. 0.251)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Ef 240.

Transcribed Image Text:Blossom Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers.
For the year 2022, management estimates the following revenues and costs.
$1,850,000 Selling expenses-variable
460,000 Selling expenses-fixed
LE
340,000 Administrative expenses-variable
Manufacturing overhead-variable
360.000 Administrative expenses-fixed
260,000
Sales
Direct materials
Direct labor
Manufacturing overhead-fixed
-Your answer is partially correct.
Sales
Prepare a CVP income statement for 2022 based on management's estimates. (Round per unit answers to 3 decimal places, e.g.
0.251.)
Variable Expenses
Selling Expenses
Administrative Expenses
Cost of Goods Sold
Variable Expenses
Selling Expenses
Cost of Goods Sold
Administrative Expenses V
Contribution Margin
Fixed Expenses
Total Variable Expenses V
Selling Expenses
V
V
Total Fixed Expenses
Administrative Expenses
Net Income/Loss)
v
Manufacturing Overhead V
eTextbook and Media
V
Variable cost per bottle
✓
v
V
x Your answer is incorrect.
$111.000
54,000
24,000
Total
102,250
BLOSSOM COMPANY
CVP Income Statement (Estimated)
For the Year Ending December 31, 2022
Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251)
Per Unit

Transcribed Image Text:Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, eg. 0.251.)
Variable cost per bottle
eTextbook and Media
x Your answer is incorrect.
Compute the break-even point in (1) sales units and (2) sales dollars. (Round answers to 0 decimal places, e.g. 1,225)
(1) Break-even point
(2)
Break-even point $
eTextbook and Media
x Your answer is incons
$
Contribution margin ratio
Compute the contribution margin ratio and the margin of safety ratio.
E
Margin of safety ratio
Tiisland Madin
x Your answer is incorrect.
Contribution margin ratio
Margin of safety ratio
Compute the contribution margin ratio and the margin of safety ratio.
eTextbook and Media
x Your answer is incorrect.
units
Required sales
%
eTextbook and Media
%
%
Determine the sales dollars required to earn net income of $150,000.
%
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education