Crane 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 $1,750,000 Selling expenses—variable $96,500 Direct materials 450,000 Selling expenses—fixed 63,000 Direct labor 360,000 Administrative expenses—variable 26,000 Manufacturing overhead—variable 380,000 Administrative expenses—fixed 69,500 Manufacturing overhead—fixed 130,000 Prepare a CVP income statement for 2022 based on management’s estimates. (Round per unit answers to 3 decimal places, e.g. 0.251.)
Crane 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 $1,750,000 Selling expenses—variable $96,500 Direct materials 450,000 Selling expenses—fixed 63,000 Direct labor 360,000 Administrative expenses—variable 26,000 Manufacturing overhead—variable 380,000 Administrative expenses—fixed 69,500 Manufacturing overhead—fixed 130,000 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
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Question
Crane 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
|
$1,750,000 |
Selling expenses—variable
|
$96,500 | |||
|---|---|---|---|---|---|---|
|
Direct materials
|
450,000 |
Selling expenses—fixed
|
63,000 | |||
|
Direct labor
|
360,000 |
Administrative expenses—variable
|
26,000 | |||
|
Manufacturing
|
380,000 |
Administrative expenses—fixed
|
69,500 | |||
|
Manufacturing overhead—fixed
|
130,000 |
Prepare a CVP income statement for 2022 based on management’s estimates. (Round per unit answers to 3 decimal places, e.g. 0.251.)
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