Question
QUESTION 2 Power Natural manufactures and sells energy drinks. The drinks are sold for RM 1.50 a bottle to the distributor. The company estimates costs
QUESTION 2 Power Natural manufactures and sells energy drinks. The drinks are sold for RM 1.50 a bottle to the distributor. The company estimates costs will be as follows when producing at a volume level of 100,000 units: Ingredients used to make the drink RM 36,000 Bottles RM 8,000 Labor working to manufacture the drink RM 22,000 Rent for the manufacturing plant RM 7,500 Utilities at the manufacturing plant - (variable) RM 2,000 Management salaries RM 18,000 Other administrative expenses, each month RM 29,000 Costs to ship the product to customers RM 3,600 Supervisors at the manufacturing plant RM 6,000 Sales commission expense RM 900 General business insurance RM 600 Advertising expense, paid monthly RM 900 i. Determine the total of variable Cost? ii. Determine the total of fixed Cost? iii. Determine the total cost to produce and sell 120,000 bottles of drink iv. Determine the total of manufacturing overhead Cost?
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