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The company Wake Up manufactures and distributes a bottled coffee cold drink. The company has been in business for 5 years. The coffee beverage
The company Wake Up manufactures and distributes a bottled coffee cold drink. The company has been in business for 5 years. The coffee beverage is sold for $1.50 per bottle to retailers across North America. When the company is operating at 100% capacity, the following revenues and costs are estimated as follows: Net sales $3 Million Direct materials Direct labour 1,000,000 Selling expenses-variable 700,000 Selling expenses-fixed Administrative expenses- variable $35,000 14,000 15,000 Manufacturing overhead- variable 400,000 30,000 Administrative expenses-fixed Manufacturing overhead-fixed 170,000
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