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 $96,500Direct materials 450,000 Selling expenses—fixed 63,000Direct labor 360,000 Administrative expenses—variable 26,000Manufacturing overhead—variable 380,000 Administrative expenses—fixed 69,500Manufacturing 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.)

The income statement as per the CVP income statement indicates the total variable cost, contribution…

Answered: Crane Company bottles and distributes…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 13PB: Artic Camping Gears currently sells 35,000 units at $73 per unit. Its expenses are as follows:...

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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