The company Harvest AB manufactures and sells two different types of products of nutritional drink for...

 

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• The company Harvest AB manufactures and sells two different types of products of "nutritional drink" for plants. One product has the name "Grow" and the other has the product name "Bloom". Below is some financial information about the company's manufacturing and sales regarding these two products. When allocating overheads, the following assumptions must be made: • direct material is the distribution key for material costs; • direct salary is the key to manufacturing costs; • number of units sold is the distribution key for administration and sales costs. Direct material Direct salary Machine time Material costs Manufacturing costs Production and sales volume Administrative- Grow 120 70 0,15 4 000 kr/st. kr/st Tim/st 25 tkr 30 tkr 50 tkr Bloom 140 90 0,20 6 000 Question 1 How much is the cost of a unit of the product "Grow"? Answer in SEK/ pc. kr/st kr/st Tim/st Question 2 What sales price must the company at least put on the product "Bloom" if the company is to have a profit margin of 30% on this product? Answer in SEK /pc. • The company Harvest AB manufactures and sells two different types of products of "nutritional drink" for plants. One product has the name "Grow" and the other has the product name "Bloom". Below is some financial information about the company's manufacturing and sales regarding these two products. When allocating overheads, the following assumptions must be made: • direct material is the distribution key for material costs; • direct salary is the key to manufacturing costs; • number of units sold is the distribution key for administration and sales costs. Direct material Direct salary Machine time Material costs Manufacturing costs Production and sales volume Administrative- Grow 120 70 0,15 4 000 kr/st. kr/st Tim/st 25 tkr 30 tkr 50 tkr Bloom 140 90 0,20 6 000 Question 1 How much is the cost of a unit of the product "Grow"? Answer in SEK/ pc. kr/st kr/st Tim/st Question 2 What sales price must the company at least put on the product "Bloom" if the company is to have a profit margin of 30% on this product? Answer in SEK /pc.

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