AP222A 

Hytek Company bottles and distributes Livit, a diet soft drink. The beverage is sold for 50 cents per 16ounce 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 expensesvariable 
$66,690 
Direct materials 
468,648 

Selling expensesfixed 
62,550 
Direct labor 
352,780 

Administrative expensesvariable 
16,100 
Manufacturing overheadvariable 
320,340 

Administrative expensesfixed 
36,364 
Manufacturing overheadfixed 
285,070 




Your answer is correct. 


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 breakeven 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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