Question
Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Production volume Liquid materials Dry materials Bottles Labels Hi-Voltage 10,500 bottles
Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Production volume Liquid materials Dry materials Bottles Labels Hi-Voltage 10,500 bottles 1,400 gallons 620 pounda 10,500 bottles 4 labels per bottle Machine setups Machine hours 500 setupa 220 MH EasySlim 220,000 bottles 27,000 gallons 3,000 pounds 220,000 bottles 2 label(s) per bottle 900 setups 3,750 MA Additional data from its two production departments follow. Department Mixing department Liquid materials Dry materials Utilities Driver Cost Callons Pounds Machine hours $ 2,272 1,991 1,985 Bottles Units $115,250 Labeling Machine setup Labels per bottle Setups 28,920 35,000 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 $6.45 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? Complete this question by entering your answers in the tabs below. Req 1 to 2 Req 3 Req 4 Determine the cost of each product line using ABC. What is the cost per bottle for Hi-Voltage and EasySlim? (Do not round your intermediate calculations. Round "Activity Rate" and "Average cost per bottle" answers to 2 decimal places.) Activity Expected Costs Expected Activity Mixing department Liquid materials Dry materials Utilities Bottling department Bottles Gallons Pounds Machine hours Bottles Labeling Labels Machine setup Selups Hi-Voltage EasySlim Activity Rate Activity driver incurred Overhead assigned Activity driver incurred Overhead assigned 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 $6.45 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? Complete this question by entering your answers in the tabs below. Req 1 to 2 Req 3 Req 4 If Hi-Voltage sells for $6.45 per bottle, how much profit does the company earn per bottle of Hi-Voltage that it sells? (Do not round intermediate calculations and round your final answers to 2 decimal places.) Price per unit Cost per unit Profit (loss) per unit Hi-Voltage 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 $6.45 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? Complete this question by entering your answers in the tabs below. Req 1 to 2 Req 3 Req 4 What is the minimum price that the company should set per bottle of EasySlim? What is the minimum price that the company should set per bottle of EasySlim?
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