Question
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
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.
Additional production information about its two product lines follows.
5. If the market price is $14 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.)
Process Department 1 Activity Mixing Cooking Product testing Driver Machine hours Machine hours Batches Quantity 1,800 1,800 600 Department 2 Machine calibration Labeling Defects Overhead cost $ 5,400 11,700 113,400 $ 130,500 $295,000 16,500 5,500 $317,000 $ 99,000 36,000 74,000 $ 209,000 Production runs Cases of output Cases of output 400 100,000 100,000 Support Recipe formulation Heat, lights, and water Materials handling Focus groups Machine hours Container types 55 1,800 10 Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 29,000 cases 290 batches 700 MH 25 groups 8 containers 200 runs Family Style 71,000 cases 310 batches 1,100 MH 30 groups 2 containers 200 runs Extra Fine Loss Family Style Profit
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