Crane Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales $1,750,000 Selling expenses—variable $96,500 Direct materials 450,000 Selling expenses—fixed 63,000 Direct labor 360,000 Administrative expenses—variable 26,000 Manufacturing overhead—variable 380,000 Administrative expenses—fixed 69,500 Manufacturing overhead—fixed 130,000 Prepare a CVP income statement for 2022 based on management’s estimates. (Round per unit answers to 3 decimal places, e.g. 0.251.)

Crane Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales $1,750,000 Selling expenses—variable $96,500 Direct materials 450,000 Selling expenses—fixed 63,000 Direct labor 360,000 Administrative expenses—variable 26,000 Manufacturing overhead—variable 380,000 Administrative expenses—fixed 69,500 Manufacturing overhead—fixed 130,000 Prepare a CVP income statement for 2022 based on management’s estimates. (Round per unit answers to 3 decimal places, e.g. 0.251.)

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 16E

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Sales	$1,750,000	Selling expenses—variable	$96,500
Direct materials	450,000	Selling expenses—fixed	63,000
Direct labor	360,000	Administrative expenses—variable	26,000
Manufacturing overhead—variable	380,000	Administrative expenses—fixed	69,500
Manufacturing overhead—fixed	130,000

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