Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Required:...
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Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Required: 1 & 2. Determine the cost of each product line using ABC. What is the cost per bottle for Hi-Voltage and EasySlim? 3. If Hi-Voltage sells for $5.85 per bottle, how much profit does the company earn per bottle of Hi-Voltage that it sells? 4. What is the minimum price that the company should set per bottle of EasySlim?
Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Production volume Liquid materials Dry materials Bottles Labels Hi-Voltage 10,500 bottles 1,200 gallons 720 pounds 10,500 bottles 4 labels per bottle 700 setups 140 MH Easyslim 270,000 bottles 35,000 gallons 5,000 pounds 270,000 bottles , label(s) per bottle 500 setups 3,600 MH Machine setups Machine hours Additional data from its two production departments follow. Driver Cost Department Mixing department Liquid materials Dry materials Utilities Bottling department Bottles Labeling Machine setup Gallons Pounds Machine hours $ 1,810 2,574 1,496 $84,150 Units Labels per bottle Setups 24,000 Required: 1 & 2. Determine the cost of each product line using ABC. What is the cost per bottle for Hi-Voltage and Easy Slim? 3. If Hi-Voltage sells for $5.85 per bottle, how much profit does the company earn per bottle of Hi-Voltage that it sells? 4. What is the minimum price that the company should set per bottle of Easy Slim
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