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1 materials: Soda, Jordan Company bottles soda in two liter (1 liter 33.8 ounces) increments. Its product has three direct a plastic bottle, and a
1 materials: Soda, Jordan Company bottles soda in two liter (1 liter 33.8 ounces) increments. Its product has three direct a plastic bottle, and a plastic cap. Given the following information, determine the appropriate total standard cost for materials Jordan Company to use in preparing its budget Soda Jordan has had problems with their machines and has a spillage rate of 10% which is built into their costing. They can purchase the soda and water mix for $0.011 per ounce. Bottle Each bottle uses 5 ounces of plastic. In an attempt to be environmentally responsible, Jordan uses 60% recycled plastic that costs $0.80 per pound (16 ounces) and 40% first-use plastic that costs $0.72 per pound. Plastic cap The plastic caps are purchased at a cost of $10 per 1,000 caps 4.b Action to take (5 points) Management of Jordan Company has determined that it must achieve a maximum raw material cost per bottle of under 1.05 per bottle. Based upon the above information, where should Jordan look for improvement? Explain your easoning
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