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Tasty Beverages began business in 2010 selling bottles of a thirst-quenching drink. Production for the first year was 104,000 bottles, and sales were 98,000 bottles.
Tasty Beverages began business in 2010 selling bottles of a thirst-quenching drink. Production for the first year was 104,000 bottles, and sales were 98,000 bottles. The selling price per bottle was $3.10. Costs incurred during the year were as follows: For 2010: Ingredients Used - 56,000 Direct Labor - 26,000 Variable overhead - 48,000 Fixed Overhead - 5,200 Variable selling expenses - 10,000 Fixed selling and administrative expenses - 28,000 Total actual cost - 173,200 a. What was the production cost per bottle under variable costing? Round your answer to the nearest cent. $ b. What was variable cost of goods sold? $ c. What was the contribution margin per bottle? Round the answer to nearest cent. $ per bottle d. What was the contribution margin ratio? Round the answer to the nearest whole percent. %
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