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Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Hi-Voltage EasySlim Production volume 11,500 bottles 230,000 bottles Liquid materials 2,400

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

Hi-Voltage EasySlim
Production volume 11,500 bottles 230,000 bottles
Liquid materials 2,400 gallons 27,000 gallons
Dry materials 920 pounds 9,000 pounds
Bottles 11,500 bottles 230,000 bottles
Labels 4 labels per bottle 2 label(s) per bottle
Machine setups 800 setups 650 setups
Machine hours 180 MH 3,750 MH

Additional data from its two production departments follow.

Department Driver Cost
Mixing department
Liquid materials Gallons $ 1,764
Dry materials Pounds 2,480
Utilities Machine hours 1,179
Bottling department
Bottles Units $ 96,600
Labeling Labels per bottle 20,240
Machine setup Setups 36,250

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 $7.35 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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