Business, 23.05.2020 04:58, Jmarie08

A Bright day Company produces two beverages, Hi-voltage and Easy slim. Data about these products follow.

Hi-Voltage EasySlim
Production volume 12,500 bottles 180,000 bottles
Liquid materials 1,400 gallons 37,000 gallons
Dry materials 620 pounds 12,000 pounds
Bottles 12,500 bottles 180,000 bottles
Labels 3 labels per bottle 1 label per bottle
Machine setups 500 setups 300 setups
Machine hours 200 MHs 3,750 MHs
Additional data from its two production departments follow.

Department Driver Cost
Mixing department
Liquid materials Gallons $ 2,304
Dry materials Pounds 6,941
Utilities Machine hours 1,422
Bottling department
Bottles Units $ 77,000
Labeling Labels per bottle 6,525
Machine setup Setups 20,000
1. Determine the cost of each product line using ABC.

2. What is the cost per bottle for Hi-Voltage?

3. What is the cost per bottle of Easy Slim? If Hi-Voltage sells for $3.75 per bottle, how much profit does the company earn per bottle d Hi-Voltage that it sells?

4. What is the minimum price that the company should set per bottle of EasySlim? Explain

Answers: 3

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A Bright day Company produces two beverages, Hi-voltage and Easy slim. Data about these products fol...