Huber Company bottles and distributes No-FIZZ, a fruit drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 70 cents per bottle. For the year 2010, management estimates the following revenues and costs.
Instructions(a) Prepare a CVP income statement for 2010 based on management’s estimates.(b) Compute the break-even point in (1) units and (2) dollars.(c) Compute the contribution margin ratio and the margin of safety ratio.(d) Determine the sales dollars required to earn net income of$390,000.