After receiving a signed Engagement Agreement from Ritual Botanics, you suggest getting started on one of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
After receiving a signed Engagement Agreement from Ritual Botanics, you suggest getting started on one of the company's primary needs, product pricing. Based on your conversations with the company, you determine that there are two products in most need of pricing analysis: (1) A 30 ml bottle of Ritual's Signature Scent essential oil synergy blend; and (2) A 100 ml bottle of a Caffeine-Infused Face Serum. The 30 ml Signature Scent is a blend consisting entirely of organic essential oils that can either be diffused, applied directly to the skin, or diluted with another carrier oil for facial or skin application (a potential future product). The 100 ml Caffeine-Infused Face Serum consists simply of fractionated coconut oil infused with organic coffee roasted by Ritual. Through additional discussions with Ritual, you find the following costing information: Ritual's Signature Scent (30 ml): Direct Materials: Ingredient Organic Lavender Organic Sandalwood Organic Tea Tree Oil Organic Ylang Ylang The cost of the direct materials (after wholesale discounts) are as follows: Material Organic Fractionated Coconut Oil Organic Lavender Organic Sandalwood Organic Tea Tree Oil Organic Ylang Ylang 30 ml bottles and lids 100 ml bottles and lids Bottle labels (both 30 ml and 100 ml) Coffee bags (8 ounce) Coffee bag labels Amount 16 ml 0.50 ml 7.50 ml 6 ml Cost $20.00 (16 ounces) $10.00 (100 ml) $36.00 (10 ml) $23.00 (100 ml) $60.00 (100 ml) $0.60 each $0.80 each $0.25 each $0.80 each $0.30 each At this point, Ritual has decided not to create boxes or containers for the products, although that may change in the future. As a point of reference, there are approximately 29 ml (rounded) in one ounce. After receiving a signed Engagement Agreement from Ritual Botanics, you suggest getting started on one of the company's primary needs, product pricing. Based on your conversations with the company, you determine that there are two products in most need of pricing analysis: (1) A 30 ml bottle of Ritual's Signature Scent essential oil synergy blend; and (2) A 100 ml bottle of a Caffeine-Infused Face Serum. The 30 ml Signature Scent is a blend consisting entirely of organic essential oils that can either be diffused, applied directly to the skin, or diluted with another carrier oil for facial or skin application (a potential future product). The 100 ml Caffeine-Infused Face Serum consists simply of fractionated coconut oil infused with organic coffee roasted by Ritual. Through additional discussions with Ritual, you find the following costing information: Ritual's Signature Scent (30 ml): Direct Materials: Ingredient Organic Lavender Organic Sandalwood Organic Tea Tree Oil Organic Ylang Ylang The cost of the direct materials (after wholesale discounts) are as follows: Material Organic Fractionated Coconut Oil Organic Lavender Organic Sandalwood Organic Tea Tree Oil Organic Ylang Ylang 30 ml bottles and lids 100 ml bottles and lids Bottle labels (both 30 ml and 100 ml) Coffee bags (8 ounce) Coffee bag labels Amount 16 ml 0.50 ml 7.50 ml 6 ml Cost $20.00 (16 ounces) $10.00 (100 ml) $36.00 (10 ml) $23.00 (100 ml) $60.00 (100 ml) $0.60 each $0.80 each $0.25 each $0.80 each $0.30 each At this point, Ritual has decided not to create boxes or containers for the products, although that may change in the future. As a point of reference, there are approximately 29 ml (rounded) in one ounce.
Expert Answer:
Answer rating: 100% (QA)
Lets address each question step by step 1 Pricing for 30 ml Signature Scent bottle To determine the pricing for the 30 ml Signature Scent bottle we need to consider the total cost of production and ov... View the full answer
Related Book For
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
Posted Date:
Students also viewed these general management questions
-
0.02 real rate of return from markets. 0.03 is the price at which the economy is rising. A stock has a 6.0000% risk premium. Find the expected rate of return. 2% 5% 8% 11%
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
You are working on your firms fifth audit of SSC. The previous audits have all resulted in standard unqualified audit reports. Read the following write-up from your audit files concerning SSC and its...
-
An electric field is E = 300 N/C i for x > 0 and E = 300 N/C i for x < 0. A cylinder of length 20 cm and radius 4 cm has its center at the origin and its axis along the x axis such that one end is at...
-
On December 31, 2019, the board of Dolman Group decided to close one of its divisions. On December 31, 2019, a detailed plan for closing the division was agreed to by the board, and letters were sent...
-
Five Native Americans sought to cancel six Pro-Football, Inc. registered trademarks, including the marks "The Redskins," "Washington Redskins," and "Redskinettes." They asserted that these marks...
-
The rate or percentage at which the federal government taxes your income is determined by your tax bracket, which is your level of income. Each year, the tax brackets can change. Write About It...
-
For the following transactions and events, indicate what effect each will have on the three classes of net assets using this format. Put an X in the appropriate column. If the net assets are...
-
Calculate the value of a bond that matures in 11 years and has a $1,000 par value. The annual coupon interest rate is 12 percent and the? market's required yield to maturity on a? comparable-risk 2...
-
Harbor Solutions Inc. (HSI) is a U.S. publicly traded company with headquarters in Boston, MA, and a June 30 year-end. HSI provides insurance claims processing solutions to businesses. In addition to...
-
How do I find total revenue in order to calculate total asset turnover? Ratios Analysis: McCormick McCormick & Company, Inc. is one of the world's leading producers of spices, herbs, seasonings, c...
-
Why college are important?
-
1. Given the following Bayes network, Compute P(A=T, C=T) A P(B) P(-B) F 0.4 0.6 0.99 T 0.01 R B A B FF FT F TT P(C) P(-C) 0 1 0.8 0.2 0.9 0.1 0.99 0.01 D A P(A) P(-A) 0.8 0.2
-
N-type semiconductor of E v =0, E c = 2.2eV and E d = 1.5eV. Calculate Efermi?
-
Cullumber Inc. had sales of $2,380,000 for the first quarter of 2020. In making the sales, the company incurred the following costs and expenses. Variable Fixed Cost of goods sold $945,000 $459,000...
-
Bookmark question for later What is a graphic rating scale? Where raters rate the extent to which the job involves the comparison factor Where raters rate the extent to which the job involves the...
-
entries are necessary in order to put the accounts up to date. a. Journalizing b. Adjusting c. Balancing d. Posting
-
5. How much would you need to deposit in an account now in order to have $5,000 in the account in 5 years? Assume the account earns 2% interest compounded monthly. 10. You deposit $300 each month...
-
How would the auditors opinion differ if the financial statements of a company that was a foreign private issuer were prepared in conformity with IFRS and filed with the SEC rather than prepared in...
-
Refer to Exhibit 2.3 and briefly describe the frauds that were perpetrated at the following companies. For each company, categorize the fraud as involving primarily (1) asset misappropriation, or (2)...
-
Describe the fraudulent conduct that is known as (a) Lapping (b) Skimming.
-
Jennifer is owed \(\$ 50\) from her friend Janice, but owes her friend Pat \(\$ 87\). What is Jennifer's net worth?
-
Use your calculator to calculate \(18-9\). Explain how the answer agrees with what was expected.
-
Use your calculator to calculate \(4 \times 8\). Explain how the answer agrees with what was expected.
Study smarter with the SolutionInn App