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Mathematics, 08.08.2019 01:30 alex43079
The tisco soft drink company has three bottling plants throughout the country bottling occurs soft drinks. the at the regional level because of the high cost of transporting bottled parent company supplies each plant with the syrup. the bottling e the syrup with carbonated soda to make and bottle the soft drinks the bottled soft drinks are then sent to regional grocery stores. th e bottling plants are treated as costs centers. the managers of the bottling plants are evaluated based on minimizing the cost per soft drink bottled and delivered. each bottling plant uses the same equipment, but some produce more bottles of soft drinks because of different demand. the costs and output for each bottling plant are: units produced 10,000,000 variable costs s 200,000 fixed costs 20,000,000 s 450,000 $1,000,000 30,000,000 s 650,000 $1,000,000 s1,000,000 required: 1. 2. estimate the average total cost per unit for each plant. why would the manager of plant a be unhappy with using the average cost as the performance measure? what is the operational leverage for each of the three bottling plants, and what does such a measure express about each location? 3.
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