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Healthy day company produces two beverages, power punch

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Reference no: EM13911112

Healthy Day Company produces two beverages, Power Punch and Slim Life. Data about these products follow.

401_267-B-M-A-A-B-C (917)-1.png

Additional data from its two production departments follow.

759_267-B-M-A-A-B-C (917)-2.png

Required: 

1. Determine the cost of each product line using ABC. 

2. What is the cost per bottle for Power Punch? What is the cost per bottle of Slim Life? 

3. If Power Punch sells for $ 3.75 per bottle, how much profit does the company earn per bottle of Power Punch that it sells? 

4. What is the minimum price that the company should set per bottle of Slim Life?Explain.

Reference no: EM13911112

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