# Hytek Company bottles and distributes Livit, a diet soft drink. - 9524

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## yousafbhutta

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• Posted on: Wed 09 May, 2012
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Hytek Company bottles and distributes Livit, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 79 cents per bottle. For the year 2012, management estimates the following revenues and costs.

 Net sales \$1,800,820 Selling expenses-variable \$66,690 Direct materials 468,648 Selling expenses-fixed 62,550 Direct labor 352,780 Administrative expenses-variable 16,100 Manufacturing overhead-variable 320,340 Administrative expenses-fixed 36,364 Manufacturing overhead-fixed 285,070

Complete the CVP income statement for 2012 based on management's estimates. (List amounts from largest to smallest e.g. 10, 5, 3, 2.)

Compute the break-even point in (1) units and (2) dollars. (Round calculation for percentage of sale to 0 decimal places, e.g. 125. Round price per bottle and other intermediate calculations to 4 decimal places, e.g. 10.2520. Round final answers to 0 decimal places, e.g. 125.)

Compute the contribution margin ratio and the margin of safety ratio. (Round answers to 0 decimal places, e.g. 125.)

Determine the sales dollars required to earn net income of \$235,500. (Round answers to 0 decimal places, e.g. 125.)

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