Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow.

Additional data from its two production departments follow.

Required
1. Determine the cost of each product line using ABC.
2. What is the cost per bottle for Hi-Voltage? What is the cost per bottle of EasySlim?
3. If Hi-Voltage sells for $3.75 per bottle, how much profit does the company earn per bottle of
4. What is the minimum price that the company should set per bottle of Easy Slim? Explain.

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Hi-Voltage EasySlim 80,000 bottles 37,000 gallons 2,000 pounds 180,000 bottles 12,500 bottles Production volume . .620 pounds Labels ....._ . . . . . . .. .. . . . .. . . . .3 labels per bottle I label per bottle 300 setups 3,750 MH 200 MH Machine hours Department Driver Cost Mixing department Liquid materials Dry materials Gallons Pounds Machine hours $2,304 6,941 1.422 Bottling department Bottles Labeling Machine setup $77,000 6,525 20,000 ..Units Labels per bottle Setups