EXERCISE 7 Limonade Italy, the Italian branch of a multinational company operating in the sports drink industry, inours the following costs for its powdered sports beverage mix in march 2016: Direct Materials costs Direct labor costs Variable manufacturing overhead costs Fixed manufacturing overhead costs Sales Commissions Average selling prices Cases of powdered mix producible Cases of powdered mix produced Cases of powdered mix sold $ 80,000 $36,000 $ 20,000 $ 54,000 $ 3 per case $ 28 per case 12,000 cases 10,000 cases 8,000 cases There is no beginning inventory, so Limonade has 2,000 cases of powered mix in ending Finished God Inventory Requirements: 1. What is Limonade's product cost per case under absorption costing and variable costing? 2. Prepare income statements for Limonade using absorption costing and variable costing. 3. Determine the company's break-even price. EXERCISE 8