board Font ge 1 of 1 240 words E Paragraph Styles Blue Mountain Coffee Company sells...

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board Font ge 1 of 1 240 words E Paragraph Styles Blue Mountain Coffee Company sells three different coffees-to-go (flavored, lattes, and iced coffees). Additionally, they sell their private label ground coffee beans. Their store fronts are very small with no seating-providing only walk-up service generally located in outdoor walking and shopping districts. To improve pricing strategy, the managers would like to more thoroughly understand the cost of their products and are pilot testing an operations costing system. Below is the relevant data, from a typical week at one of their locations, gathered to support the analysis. Product Flavored Coffees (16 oz) Iced Coffees Lattes (20 oz) (20 oz) 2lb Bag of Coffe Beans Selling price per unit $5.00 $5.00 $5.00 $20.00 Variable materials cost per unit $2.00 $4.00 $4.00 $8.00 Sales volume 300 500 600 100 Number of minutes of labor time 2 4 5 6 to produce one unit of output Additionally, weekly labor cost and overhead combined average $2,000. Administrative costs such as marketing, rent, etc. average $1,000 per week. It has been suggested that Blue Mountain assign conversion costs based on the amount of labor time used by each of the four products. Carry all per unit computations to three decimal places. Determine 1. the total variable cost per unit (materials and conversion costs) 2. the contribution margin per unit based on the computations in (1) above 3. if Blue Mountain should consider changing prices for any of the products Focus Editing Voice Se board Font ge 1 of 1 240 words E Paragraph Styles Blue Mountain Coffee Company sells three different coffees-to-go (flavored, lattes, and iced coffees). Additionally, they sell their private label ground coffee beans. Their store fronts are very small with no seating-providing only walk-up service generally located in outdoor walking and shopping districts. To improve pricing strategy, the managers would like to more thoroughly understand the cost of their products and are pilot testing an operations costing system. Below is the relevant data, from a typical week at one of their locations, gathered to support the analysis. Product Flavored Coffees (16 oz) Iced Coffees Lattes (20 oz) (20 oz) 2lb Bag of Coffe Beans Selling price per unit $5.00 $5.00 $5.00 $20.00 Variable materials cost per unit $2.00 $4.00 $4.00 $8.00 Sales volume 300 500 600 100 Number of minutes of labor time 2 4 5 6 to produce one unit of output Additionally, weekly labor cost and overhead combined average $2,000. Administrative costs such as marketing, rent, etc. average $1,000 per week. It has been suggested that Blue Mountain assign conversion costs based on the amount of labor time used by each of the four products. Carry all per unit computations to three decimal places. Determine 1. the total variable cost per unit (materials and conversion costs) 2. the contribution margin per unit based on the computations in (1) above 3. if Blue Mountain should consider changing prices for any of the products Focus Editing Voice Se

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Here are the calculations 1 Variable cost per unit Flavored Coffee Materials cost 200 Conversion cos... View the full answer