Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 77 cents per bottle. For the year 2014, management estimates the following revenues and costs.
| Sales |
|
$1,820,000 |
|
Selling expenses-variable |
|
$66,800 |
| Direct materials |
|
429,000 |
|
Selling expenses-fixed |
|
66,400 |
| Direct labor |
|
352,000 |
|
Administrative expenses-variable |
|
76,800 |
| Manufacturing overhead-variable |
|
313,000 |
|
Administrative expenses-fixed |
|
62,400 |
| Manufacturing overhead-fixed |
|
283,000 |
|
|
|
Sales - 1820000
Variable Expenses
Cost of goods sold - ?
Selling expenses - 66800
administrative expenses - 76800
total variable expenses - ?
contribution margin - ?
Fixed expenses
Cost of goods sold - ?
Selling expenses - 66400
Administrative expenses - 62400
Total fixed expenses - ?
Net Income - ?