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DgZag Cole produces a lemon-lime sode. The production process starts with workers mixing the lemon syrup and lime flavors in a secret recipe. The
DgZag Cole produces a lemon-lime sode. The production process starts with workers mixing the lemon syrup and lime flavors in a secret recipe. The company enhances the combined syrup with caffeine. Finally, the company dules the mixture with carbonated water ZigZag Cola incurs the following costs (in thousands) (Click the loon to view the costs) Re Data table: x R further t Plant janitors' wages. 1000 the tab Delivery truck drivers' wages S 235 Payment for new recipe. B 850 Depreciation on delivery trucks 350 Plant utilities $ 7001 1.180 Lime flavoring.. Dis Rearrangment of plant layout $ 1,200 P Bottles $ 1210 T Sall.. $ 20 P 450 Sales commissions D Production costs of "cents-off store coupons for customers $ 570 P Lemon syrup $ 22.000 L Replacement of products with expired dates upon customer $ 60 complaint... D Depreciation on plant and equipment S Wages of workers who mix syrup... Customer hotline Freight-in on materials: $ 2,800 $ 8.200 $ 250 $ 1,400 Requirements 1. Classify each of the listed costs according to its category in the value chain (R&D, Design, Prodon Marketing, Distribution, or Customer Service) 2. Further brea production costs into three subcategories Direct Materials (DM) Direct Labor (DL) br Manufacturing Overhead (MOH) 3. Compute the total costs for each value chain category. 4. How much are the total product costs? 5. Suppose the managers of the R&D and design functions receive your end bonuses based on meeting their unit's target cost reductions. What are they likely to do? How might this affect costs incurred in other elements of the value chain? Print Done Time Remaining: 02:45:191 Next
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