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Sara's Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in
Sara's 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 company's production support activities follow. Process Department 1 Activity Mixing Cooking Product testing Department 2 Machine calibration. Labeling Defects 113,180 $ 129,000 $ 280,000 10,000 4,500 $294,500 Overhead cost $ 5,100 10,800 Driver Machine hours Machine hours Batches Quantity 1,500 1,500 1,000 Production runs 700 Cases of output Cases of output 145,000 145,000 Support Recipe formulation $ 96,000 Focus groups 75 Heat, lights, and water Materials handling 33,000 71,000 Machine hours Container types 1,500 8 $ 200,000 Additional production information about its two product lines follows. Units produced Batches Machine hours Focus groups Container types Production runs Extra Fine 26,000 cases Family Style 119,000 cases 740 batches 950 MH 25 groups 260 batches 550 MH 50 groups 5 containers 260 runs 440 runs 3 containers 5. If the market price is $18 per case of Extra Fine and $10 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 Family Style Loss Profit
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