Determine the sales dollars required to earn net income of $624,000.

All Frute Company bottles and distributes Frute Ade, a fruit drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 70 cents per bottle. For the year 2014, management estimates the following revenues and costs. Sales $2,500,000 Selling expenses—variable $ 80,000 Direct materials 360,000 Selling expenses—? xed 250,000 Direct labor 450,000 Administrative expenses— Manufacturing overhead— variable 40,000 variable 270,000 Administrative expenses— Manufacturing overhead— ? xed 150,000 ? xed 380,000 Instructions (a) Prepare a CVP income statement for 2014 based on management’s estimates. (Show column for total amounts only.) (b) Compute the break-even point in (1) units and (2) dollars. (c) Compute the contribution margin ratio and the margin of safety ratio. (d) Determine the sales dollars required to earn net income of $624,000.

Don't use plagiarized sources. Get Your Custom Essay on
Determine the sales dollars required to earn net income of $624,000.
Just from $13/Page
Order Essay
Place Order
Grab A 14% Discount on This Paper
Pages (550 words)
Approximate price: -
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Try it now!

Grab A 14% Discount on This Paper

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.