Williams Company bottles and distributes Supe Juice, a soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2022, management estimates the following revenues and costs. Sales: $1,800,000 Selling expenses—variable: $70,000 Direct materials: 430,000 Selling expenses—fixed: 65,000 Direct labor: 360,000 Administrative expenses—variable: 20,000 Manufacturing overhead—variable: 380,000 Administrative expenses—fixed: 60,000 Manufacturing overhead—fixed: 280,000 What is the variable cost per bottle? What is the Break even cost in units? What are the sales dollars required to earn net income of $180,000?
Williams Company bottles and distributes Supe Juice, a soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2022, management estimates the following revenues and costs.
Sales: $1,800,000
Selling expenses—variable: $70,000
Direct materials: 430,000
Selling expenses—fixed: 65,000
Direct labor: 360,000
Administrative expenses—variable: 20,000
Manufacturing overhead—variable: 380,000
Administrative expenses—fixed: 60,000
Manufacturing overhead—fixed: 280,000
What is the variable cost per bottle?
What is the Break even cost in units?
What are the sales dollars required to earn net income of $180,000?
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