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Question - Peter's Pick-Me-Ups Inc. manufactures and sells a nutrition drink for children. The company wants to develop a standard cost per kilogram. The following are required for production of a 10-litre batch:
70 grams of lime Kool-Drink at $0.07 per gram
5 grams of granulated sugar $0.24 per gram
12 kiwi fruit at $0.70 each
30 protein tablets at $0.80 each
9 litres of mineral water at $0.05 per litre
Peter's Pick-Me-Ups estimates that 3% of the lime Kool-Drink is wasted, 10% of the sugar is lost, and 5% of the kiwis cannot be used.
Required - Calculate the standard cost of the ingredients for one litre of the nutrition drink.
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