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

	Hi-Voltage		SlimLife
Production volume	10,000	bottles	240,000	bottles
Liquid materials	800	gallons	31,000	gallons
Dry materials	1,220	pounds	15,000	pounds
Bottles	10,000	bottles	240,000	bottles
Labels	4	labels per bottle	3	label per bottle
Machine setups	900	setups	600	setups
Machine hours	150	MH	4,200	MH

Additional data from its two production departments follow.

Department

Driver

Cost

Mixing department

Liquid materials

Gallons

$

954

Dry materials

Pounds

6,488

Utilities

Machine hours

3,045

Bottling department

Bottles

Units

$

75,000

Labeling

Labels per bottle

30,400

Machine setup

Setups

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? (Do not round your intermediate calculations. Round "Activity Rate" answers to 2 decimal places.)

						Hi-Voltage	Hi-Voltage	EasySlim	EasySlim
activity	expcted costs	expected activity	expected activity	activity rate	activity rate	activ. driver incurred	overhead assigend	activ. driver incurred	overhead assigend
Mixing department	Mixing depa	Mixing depa	Mixing depa	Mixing depa	Mixing depa	Mixing depa	Mixing depa	Mixing depa	Mixing depa
Liquid materials			Gallons
Dry materials			Pounds
Utilities			Machine hours
Bottling department	Bottling depa	Bottling depa	Bottling depa	Bottling depa	Bottling depa	Bottling depa	Bottling depa	Bottling depa	Bottling depa
Bottles			bottles
Labeling			Labels
Machine setup			Setups

Assume if Hi-Voltage sells for $6.55 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.)

	Hi-Voltage
price per unit
cost per unit
profit (loss) oer unit

What is the minimum price that the company should set per bottle of EasySlim?

A.$0.52 per bottle

B.$0.72 per bottle

c.$0.87 per bottle