Problem 18-2A (Part Level Submission) (a) JORGE COMPANY CVP Income Statement (Es
ID: 2424664 • Letter: P
Question
Problem 18-2A (Part Level Submission)
(a)
JORGE COMPANY
CVP Income Statement (Estimated)
For the Year Ending December 31, 2014
Problem 18-2A (Part Level Submission)
Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 78 cents per bottle. For the year 2014, management estimates the following revenues and costs.Sales $ 1,805,800 Selling expenses—variable $ 65,400 Direct materials 428,800 Selling expenses—fixed 65,400 Direct labor 358,300 Administrative expenses—variable 47,386 Manufacturing overhead—variable 310,000 Administrative expenses—fixed 60,200 Manufacturing overhead—fixed 293,000
Explanation / Answer
CVP Income statement for 2014based on Management's estimates.
Particulars $ Total
Sales 1,805,800
Variable Expenses
Direct materials 4,28,800
Direct Labor 3,58,300
Manufacturing overheads 3,10,000
Cost of goods sold 10,96,300
Selling expenses 65,400
Administrative expenses 47,386
Total Variable expenses (12,09,086)
Contribution Margin 5,96,714
Fixed expenses
Manufacturing overheads 2,93,000
Selling expenses 65,400
Administrative expenses 60,200
Total Fixed expenses (4,18,600)
Net Income 1,78,114 .