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Bright Day Company produces two beverages, Hi-Voltage and Easy Slim. Data about these products follow. Production volume Liquid materials Dry materials Bottles Hi-Voltage 11,500 bottles
Bright Day Company produces two beverages, Hi-Voltage and Easy Slim. Data about these products follow. Production volume Liquid materials Dry materials Bottles Hi-Voltage 11,500 bottles 1,800 gallons 820 pounds 11,500 bottles 4 labels per bottle 900 setups 140 MH EasySlim 240,000 bottles 33,000 gallons 6,000 pounds 240,000 bottles label(s) per bottle 400 setups 3,900 MH Labels 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 $ 1,740 3,410 1,616 Units Labels per bottle Setups $ 75,450 22,980 26,000 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 $6.95 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? Req 1 to 2 Req3 Req 4 Determine the cost of each product line using ABC. What is the cost per bottle for Hi-Voltage and Easy Slim? (D to 2 decimal places.) Expected Costs Expected Activity Activity Rate Activity Mixing department Liquid materials Dry materials Utilities Botling department Bottles Labeling Machine setup Gallons Pounds Machine hours Bottles Labels Setups (Do not round your intermediate calculations. Round "Activity Rate" and "Average cost per bottle" answers Hi-Voltage Activity driver incurred Overhead assigned Easy Slim Activity driver Overhead incurred assigned Req 1 to 2 Reg 3 Req 4 If Hi-Voltage sells for $6.95 per bottle, how much profit does the company earn per bottle of Hi-Voltage that it sells? (Do not round intermediate calculations and round your final answers to 2 decimal places.) Hi-Voltage Price per unit Cost per unit Profit (loss) per unit Req 1 to 2 Reg 3 Reg 4 What is the minimum price that the company should set per bottle of EasySlim? What is the minimum price that the company should set per bottle of Easy Slim
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