Problem 17-5A Pricing analysis with ABC and a plantwide overhead rate LO A1, A2, P1, P3

[The following information applies to the questions displayed below.] Saras Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and the companys production support activities follow.

Process	Activity	Overhead cost			Driver	Quantity
Department 1	Mixing	$	4,500		Machine hours	1,500
	Cooking		11,250		Machine hours	1,500
	Product testing		112,500		Batches	600
		$	128,250
Department 2	Machine calibration	$	250,000		Production runs	400
	Labeling		12,000		Cases of output	120,000
	Defects		6,000		Cases of output	120,000
		$	268,000
Support	Recipe formulation	$	90,000		Focus groups	45
	Heat, lights, and water		27,000		Machine hours	1,500
	Materials handling		65,000		Container types	8
		$	182,000

Additional production information about its two product lines follows.

	Extra Fine		Family Style
Units produced	20,000	cases	100,000	cases
Batches	200	batches	400	batches
Machine hours	500	MH	1,000	MH
Focus groups	30	groups	15	groups
Container types	5	containers	3	containers
Production runs	200	runs	200	runs

Problem 17-5A Part 5

5. If the market price is $18 per case of Extra Fine and $9 per case of Family Style, determine the gross profit per case for each product. (Round your intermediate calculations and final answers to 2 decimal places.)

Extra Fine	Loss	___?___
Family Style	Profit	___?___