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Hmmpany bottles and distributes Livit a diet soft drink

Hmmpany bottles and distributes Livit, 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 2008, management estimates the following revenues and costs.

Net sales
$1,800,000
 
Selling expenses-variable
$70,000
Direct materials
430,000
 
Selling expenses-fixed
65,000
Direct labor
352,000
 
Administrative expenses-variable
20,000
Manufacturing overhead-variable
316,000
 
Administrative expenses-fixed
60,000
Manufacturing overhead-fixed
283,000
   

Prepare a CVP income statement for 2008 based on management's estimates. (List amounts from largest to smallest eg 10, 5, 3, 2.)

UTECH COMPANY
CVP Income Statement (Estimated)

For the Year Ending December 31, 2008

Net sales Administrative expensesSelling expenses Cost of goods sold $
Variable expenses
      Selling expensesNet salesCost of goods sold Administrative expenses $
      Cost of goods sold Administrative expenses Selling expenses Net sales  
      Selling expenses Net salesAdministrative expenses Cost of goods sold  
          Total variable expenses  
Contribution margin  
Fixed expenses
     Cost of goods sold Administrative expensesNet sales Selling expenses  
     Cost of goods sold Administrative expenses Selling expensesNet sales  
     Administrative expenses Net salesCost of goods sold Selling expenses  
          Total fixed expe

May 02 2018 View more View Less

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