Healthy Day Company produces two beverages, PowerPunch and SlimLife. Data about
ID: 2380993 • Letter: H
Question
Healthy Day Company produces two beverages, PowerPunch and SlimLife. Data about these products follow.
Additional data from its two production departments follow:
Determine the cost of each product line using ABC.
What is the cost per bottle for PowerPunch? What is the cost per bottling of SlimLife?
(Hint: Your answer should draw on the total cost for each product line computed in
requirement 1.)
If PowerPunch sells for $3.75 per bottle, how much profit does the company earn per
bottle of PowerPunch that it sells?
What is the minimum price that the company should set per bottle of SlimLife? Explain.
Healthy Day Company produces two beverages, PowerPunch and SlimLife. Data about these products follow. Additional data from its two production departments follow: Determine the cost of each product line using ABC. What is the cost per bottle for PowerPunch? What is the cost per bottling of SlimLife? (Hint: Your answer should draw on the total cost for each product line computed in requirement 1.) If PowerPunch sells for $3.75 per bottle, how much profit does the company earn per bottle of PowerPunch that it sells? What is the minimum price that the company should set per bottle of SlimLife? Explain.Explanation / Answer
2.
PowerPunch
SlimLife
Total cost of line
$19,122
$95,070
PowerPunch
SlimLife
Total cost of line
$19,122
$95,070
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