Illustrate what is the minimum price that company should set

Assignment Help Financial Accounting

Reference no: EM13127983

PowerPunch simlife

Production volume 10,500 bottles 290,000 bottles
Liquid materials 2,000 gallons 37,000 gallons
Dry materials 1,220 pounds 7,000 pounds
Bottles 10,500 bottles 290,000 bottles
Labels 4 labels per bottle 3 label per bottle
Machine setups 600 setups 900 setups
Machine hours 210 MH 3,450 MH

Department Driver Cost
Mixing department
Liquid materials Gallons $3,510
Dry materials Pounds 2,877
Utilities Machine hours 1,830
Bottling department
Bottles Units $120,200
Labeling Labels per bottle 45,600
Machine setup Setups 52,500

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

2)What is the cost per bottle for PowerPunch and SlimLife?

3) Assume if PowerPunch sells for $7.25 per bottle, how much profit does the company earn per bottle of PowerPunch that it sells?

4) What is the minimum price that the company should set per bottle of SlimLife?

Reference no: EM13127983

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