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ABC Company produces 500,016 cans (20,834 cases) of juice per month and sells 16,700 cases per month to XYZ Retailers. The company purchases the following
ABC Company produces 500,016 cans (20,834 cases) of juice per month and sells 16,700 cases per month to XYZ Retailers. The company purchases the following materials to produce its sodas: 1. Sugar - P 100/kg 2. Fruit Juice - P 150/L 3. Artificial Coloring - P 250/L A can of juice usually contains 20g of sugar, 200ml of fruit juice, 10ml of artificial coloring and 110ml of water. The company usually pays salaries of their five operational supervisors at P 15,000 each and two operational managers at P 25,000 each. They have twenty-five (25) employees who are paid per hour at P 200/hr. They all work for 4 hours each in two batches, 26 days a month. All the employees including the managers and supervisors have monthly miscellaneous benefits amounting to P 1,000 per employee per month. Other monthly costs incurred by the company are the following: Rent: P 150,000 Utilities: P 100,000 The company sells their cans of juice at P 45.00 per can to XYZ Retailer. They also pay for transportation per case sold at P 10/case. 1. What is the variable cost per unit? 2. What is the TOTAL fixed cost? 3. What is the Breakeven Quantity?
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