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Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Hi-Voltage EasySlim Production volume 9,500 bottles 180,000 bottles Liquid materials 1,400

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

Hi-Voltage EasySlim
Production volume 9,500 bottles 180,000 bottles
Liquid materials 1,400 gallons 23,000 gallons
Dry materials 1,120 pounds 16,000 pounds
Bottles 9,500 bottles 180,000 bottles
Labels 4 labels per bottle 3 label(s) per bottle
Machine setups 1,000 setups 450 setups
Machine hours 190 MH 3,450 MH

Additional data from its two production departments follow.

Department Driver Cost
Mixing department
Liquid materials Gallons $ 1,220
Dry materials Pounds 8,560
Utilities Machine hours 1,092
Bottling department
Bottles Units $ 113,700
Labeling Labels per bottle 28,900
Machine setup Setups 43,500

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 $6.65 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?

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