QUESTION 16 a. AbangaCola Bottling Company is a cola drink manufacturing company planning to establish its operations in Ghana to produce its trademark AbangaCola. Based on the estimated annual sales of 60,000 bottles of the drink, cost studies have produced the following estimates for the Ghana operation. All costs are fully resolved into fixed and variable components. No proportion of the cost from other operations are allocated to the Ghana operations. Required: i. Compute the selling price per bottle to enable the management to realize an estimated 20% profit on sale proceed in Ghana. ii. Calculate the break-even point in number of bottles and sales value. b. Ghana Diary Limited (GDL) processes fresh milk into butter, cheese, and ghee. It purchases fresh milk and process it until it separates into butter and cheese. For the month of January 2021, Ghana Diary Limited purchased 50,000 litres of milk at GHS 10 per litre. Conversion cost of GHS 100,000 were incurred up to the split off point where two saleable products were produced i.e butter and cheese. Butter can be further processed into Ghee. The January, 2021 production and sales information is as follows All 20,000 litres of butter are further processes at an incremental cost of GHS 120,000 to yield 16,000 litres of Ghee. There was no opening or closing inventories of butter, cheese or Ghee in January 2021. Required: i. Show how joint cost would be apportioned between butter and cheese under the estimated net realisable value method. ii. Nestle Ghana Limited offers to purchase the 20,000 litters of butter in February at GHS 360 per litre. Should Ghana Diary Accept the offer form nestle