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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Please do not give solution in image format thanku

Transcribed Image Text:Ripple Company bottles and distributes Ripple Fizz, a flavoured wine beverage. The
beverage is sold for $1.50 per 8-ounce bottle to retailers. Management estimates the
following revenues and costs at 100% of capacity.
Net sales
Direct materials
Direct labour
Manufacturing overhead-
variable
Manufacturing overhead-
fixed
C.
a.
b.
$3,000,000 Selling expenses-variable
700,000 Selling expenses-fixed
1,000,000
400,000
170,000
Administrative expenses-
variable
Administrative expenses-
fixed
Required:
How much is net income for the year using the CVP approach? Present in CVP
income statement format.
$35,000
14,000
15,000
Calculate the break-even point units and dollars.
How much is the contribution margin ratio?
WW² = FC | CMIU
30,000
Expert Solution
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