Question
Whole Milk 1.75 x 159,000 units sold Low-Fat Milk 1.75 x 417,000 units sold Chocolate Milk 1.85 x 182,000 units sold BKW incurs the following
Whole Milk 1.75 x 159,000 units sold Low-Fat Milk 1.75 x 417,000 units sold Chocolate Milk 1.85 x 182,000 units sold BKW incurs the following costs to produce its dairy products: Glass Bottles $1.45 per quart Milking Machine $17,000 Utilities $5,300 Depreciation for the Building $12,000 Cocoa (for Chocolate Milk only) $0.12 per quart Sugar (for Chocolate Milk only) $0.08 per quart Capping and Finishing Process $18,400 plus $0.10 (labor) per quart Repairs and Maintenance $8,400 General and Administration Support $27,600 Quality Control and Inspection $19,000 Separation Process (for Low-Fat Milk only) $0.05 per quart Shipping and Delivery $7,900 Customer Service and Order Taking $9,400 . What is the contribution margin per unit for each of the product lines (Whole Milk, Low-Fat Milk and Chocolate Milk)?
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