Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Hi-Voltage EasySlim Production volume 10,500 bottles 220,000 bottles Liquid materials 1,000 gallons 25,000 gallons Dry materials 520 pounds 8,000 pounds Bottles 10,500 bottles 220,000 bottles Labels 3 labels per bottle 3 label(s) per bottle Machine setups 1,200 setups 600 setups Machine hours 170 MH 4,350 MH Additional data from its two production departments follow. Department Driver Cost Mixing department Liquid materials Gallons $ 780 Dry materials Pounds 3,834 Utilities Machine hours 1,808 Bottling department Bottles Units $ 92,200 Labeling Labels per bottle 27,660 Machine setup Setups 27,000 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 $6.35 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?