Oasis Bottling Company bottles popular beverages in the Bottling Department. The beverages are produced by blending concentrate with water and sugar. The concentrate is purchased from a concentrate producer. The concentrate producer sets higher prices for the more popular concentrate flavors. Below is a simplified Bottling Department cost of production report separating the cost of bottling the four flavors

Beginning and ending work in process inventories are negligible, so are omitted from the cost of production report. The flavor changeover cost represents the cost of cleaning the bottling machines between production runs of different flavors.
Prepare a memo to the production manager analyzing this comparative cost information.
In your memo, provide recommendations for further action, along with supporting schedules showing the total cost per case and cost per case by costelement.

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Orange Cola Lemon-Lime Root Beer 1 Concentrate 2 Water 3 Sugar 4 Bottles 5,400 $110,000 63,000 $1,8001 1,800 30,000 18,000 3,000 50,000 6,600 110,000 600 2 30,000 1,000 3 3,0001 -6.000一一66,000-2200 2400 25,000 15,000 -51-Flavor changeover 8006 6 Conversion cost 7 Total cost transferred to finished goods$22,200 $331000 $195,6009400 7 8 Number of cases 3,000 50,00030,0001,000