Ripple Company bottles and distributes Ripple Fizz, a flavoured wine beverage. The beverage is sold for $1.50 per 8-ounce bottle to retailers. Management estimates the following revenues and costs at 100% of capacity. Net sales Direct materials Direct labour Manufacturing overhead- variable Manufacturing overhead- fixed C. a. b. $3,000,000 Selling expenses-variable 700,000 Selling expenses-fixed 1,000,000 400,000 170,000 Administrative expenses- variable Administrative expenses- fixed. Required: How much is net income for the year using the CVP approach? Present in CVP income statement format. $35,000 14,000 15,000 Calculate the break-even point units and dollars. How much is the contribution margin ratio? 30,000
Ripple Company bottles and distributes Ripple Fizz, a flavoured wine beverage. The beverage is sold for $1.50 per 8-ounce bottle to retailers. Management estimates the following revenues and costs at 100% of capacity. Net sales Direct materials Direct labour Manufacturing overhead- variable Manufacturing overhead- fixed C. a. b. $3,000,000 Selling expenses-variable 700,000 Selling expenses-fixed 1,000,000 400,000 170,000 Administrative expenses- variable Administrative expenses- fixed. Required: How much is net income for the year using the CVP approach? Present in CVP income statement format. $35,000 14,000 15,000 Calculate the break-even point units and dollars. How much is the contribution margin ratio? 30,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ripple Company bottles and distributes Ripple Fizz, a flavoured wine beverage. The
beverage is sold for $1.50 per 8-ounce bottle to retailers. Management estimates the
following revenues and costs at 100% of capacity.
Net sales
Direct materials
Direct labour
Manufacturing overhead-
variable
Manufacturing overhead-
fixed
C.
a.
b.
$3,000,000 Selling expenses-variable
700,000 Selling expenses-fixed
1,000,000
400,000
170,000
Administrative expenses-
variable
Administrative expenses-
fixed
Required:
How much is net income for the year using the CVP approach? Present in CVP
income statement format.
$35,000
14,000
15,000
Calculate the break-even point units and dollars.
How much is the contribution margin ratio?
WW² = FC | CMIU
30,000
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