Problem 4-4A Bright day Company produces two beverages, Hi-voltage and Easy slim
ID: 2423727 • Letter: P
Question
Problem 4-4A
Bright day Company produces two beverages, Hi-voltage and Easy slim. 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 Hi-Voltage? 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? What is the minimum price that the company should set per bottle of EasySlim? Explain.Explanation / Answer
Calculation of the cost using ABC Cost Driver Total Cost Hi Voltage Easy Slim Total Production Volume Bottles 77000 5000 72000 192500 Liquid Material gallons 2304 84 2220 38400 Dry Material Pounds 6941 341 6600 12620 Borders Bottles 77000 5000 72000 192500 Labels label per bottle 6525 1631.25 4893.75 4 label per bottle Machine Setups Setups 20000 12500 7500 800 Machine Hours MH 1422 72 1350 3950 Total 24628.25 166563.8
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.