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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 10,000 bottles 1,400 gallons $20 pounds 10,000 bottles 3 labels per bottle 1,100 setups 140 MH Easyslin 180,000 bottles 33,000 gallons 4,000 pounds 1 180,000 bottles 1 label(s) per bottle 500 setups 3,750 MH Additional data from its two production departments follow. Department Mixing department Liquid materials Dry materials Utilities. Driver Cast Gallons $2,064 Pounds Machine hours 2,260 778 Bottles Units $76,000 Labeling Lebels per bottle 6,300 Machine setup Setups 32,000 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 $7.05 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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