Determine the cost of each product line using abc what is

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Reference no: EM13583037

	Hi-Voltage		SlimLife
Production volume	12,000	bottles	230,000	bottles
Liquid materials	2,200	gallons	25,000	gallons
Dry materials	820	pounds	9,000	pounds
Bottles	12,000	bottles	230,000	bottles
Labels	4	labels per bottle	2	label per bottle
Machine setups	1,000	setups	850	setups
Machine hours	130	MH	3,900	MH

Additional data from its two production departments follow.

Department	Driver	Cost
Mixing department
Liquid materials	Gallons		$	1,904
Dry materials	Pounds			7,365
Utilities	Machine hours			1,209
Bottling department
Bottles	Units		$	72,600
Labeling	Labels per bottle			25,400
Machine setup	Setups			46,250

Required
1 &2.	Determine the cost of each product line using ABC. What is the cost per bottle for Hi-Voltage and EasySlim? (Do not round your intermediate calculations. Round "Activity Rate" answers to 2 decimal places.)

3.	Assume if Hi-Voltage sells for $6.25 per bottle, how much profit does the company earn per bottle of Hi-Voltage that it sells? (Do not round intermediate calculations and round your final answers to 2 decimal places.)

4.	What is the minimum price that the company should set per bottle of EasySlim?

Reference no: EM13583037

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