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Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Production volume Liquid materials Dry materials Bottles Hi-Voltage 11,000 bottles
Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Production volume Liquid materials Dry materials Bottles Hi-Voltage 11,000 bottles 2,200 gallons 620 pounds 11,000 bottles EasySlim 190,000 bottles 23,000 gallons 16,000 pounds 190,000 bottles Labels 4 labels per bottle Machine setups Machine hours 600 setups 120 MH label(s) per 2 bottle 650 setups 3,900 MH Additional data from its two production departments follow. Department Mixing department Liquid materials Dry materials Utilities Bottling department Driver Cost Gallons $ 1,008 Pounds 4,986 Machine hours 1,206 Bottles Units $80,400 Labeling Labels per bottle Machine setup Setups 8,480 37,500 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 $6.35 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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