Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Hi-Voltage EasySlim...

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Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Hi-Voltage EasySlim 270,000 bottles 31,000 gallons 8,000 pounds 270,000 bottles 2 Production volume Liquid materials Dry materials Bottles Labels Machine setups Machine hours 10,500 bottles 2,000 gallons 1,220 pounds 10,500 bottles 3 labels per bottle 400 setups 190 MH Additional data from its two production departments follow. Department Cost Mixing department $1,650 3,688 Liquid materials Dry materials Utilities Bottling department 2,364 Bottles Labeling Machine setup Driver Gallons Pounds Machine hours Units Labels per bottle Setups 800 setups 3,750 MH label(s) per bottle $112,200 11,430 42,000 Required: 1& 2. Determine the cost of each product line using ABC. What is the cost per bottle for Hi-Voltage and EasySlim? 3. If Hi-Voltage sells for $6.25 per bottle, how much profit does the company earn per bottle of Hi-Voltage that it sells? 4. What is the minimum price that the company should set per bottle of EasySlim? Griec Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow. Hi-Voltage EasySlim 270,000 bottles 31,000 gallons 8,000 pounds 270,000 bottles 2 Production volume Liquid materials Dry materials Bottles Labels Machine setups Machine hours 10,500 bottles 2,000 gallons 1,220 pounds 10,500 bottles 3 labels per bottle 400 setups 190 MH Additional data from its two production departments follow. Department Cost Mixing department $1,650 3,688 Liquid materials Dry materials Utilities Bottling department 2,364 Bottles Labeling Machine setup Driver Gallons Pounds Machine hours Units Labels per bottle Setups 800 setups 3,750 MH label(s) per bottle $112,200 11,430 42,000 Required: 1& 2. Determine the cost of each product line using ABC. What is the cost per bottle for Hi-Voltage and EasySlim? 3. If Hi-Voltage sells for $6.25 per bottle, how much profit does the company earn per bottle of Hi-Voltage that it sells? 4. What is the minimum price that the company should set per bottle of EasySlim? Griec

Answer rating: 100% (QA)

1 Calculate the cost per unit of each cost driver Cost per gallon of liquid materials 1650 2000 gall... View the full answer