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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 Labels Machine setups
Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Production volume Liquid materials Dry materials Bottles Labels Machine setups Machine hours Hi-Voltage 10,500 bottles 800 gallons. 1,020 pounds 10,500 bottles 5 labels per bottle 300 setups 150 MH EasySlim 200,000 bottles 27,000 gallons 8,000 pounds 200,000 bottles 2 label(s) per bottle. 950 setups 4,200 MH Additional data from its two production departments follow. Department Mixing department Liquid materials Dry materials Utilities Driver Cost Gallons: $ 1,668 Pounds 5,863 Machine hours 2,175 Bottles Units $126,300 Labeling Labels per bottle. 18,100 Machine setup Setups 43,750 Bottling department 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 $6.75 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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