Business, 01.03.2021 21:30 TropicalFan

Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Hi-Voltage EasySlim
Production volume 11,000 bottles 240,000 bottles
Liquid materials 2,000 gallons 35,000 gallons
Dry materials 1,120 pounds 18,000 pounds
Bottles 11,000 bottles 240,000 bottles
Labels 4 labels per bottle 2 label(s) per bottle
Machine setups 400 setups 250 setups
Machine hours 170 MH 4,050 MH

Additional data from its two production departments follow.

Department Driver Cost
Mixing department Liquid materials Gallons $1,480
Dry materials Pounds 7,648
Utilities Machine hours 2,110
Bottling department Bottles Units $75,300
Labeling Labels per bottle 31,440
Machine setup Setups 13,000

Required:
a. Determine the cost of each product line using ABC.
b. What is the cost per bottle for Hi-Voltage?
c. What is the cost per bottle of Easy Slim? If Hi-Voltage sells for $3.75 per bottle, how much profit does the company earn per bottle d Hi-Voltage that it sells?
d. What is the minimum price that the company should set per bottle of EasySlim? Explain.

Answers: 2

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Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow...