Health Drinks Company
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hw_1_health_drinks_company_produces_two_beverages.docx|
Health Drinks Company produces two beverages, PowerPunch and SlimLife. Data about these products follow. |
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|
PowerPunch |
SlimLife |
||
|
Production volume |
12,500 |
bottles |
180,000 |
bottles |
|
Liquid materials |
1,400 |
gallons |
37,000 |
gallons |
|
Dry materials |
620 |
pounds |
12,000 |
pounds |
|
Bottles |
12,500 |
bottles |
180,000 |
bottles |
|
Labels |
3 |
labels per bottle |
1 |
label per bottle |
|
Machine setups |
500 |
setups |
300 |
setups |
|
Machine hours |
200 |
MH |
3,750 |
MH |
|
|
|
Additional data from its two production departments follow. |
|
Department |
Driver |
Cost |
|
Mixing department |
|
|
|
Liquid materials |
Gallons |
$ 2,304 |
|
Dry materials |
Pounds |
6,941 |
|
Utilities |
Machine hours |
1,422 |
|
Bottling department |
|
|
|
Bottles |
Units |
$ 77,000 |
|
Labeling |
Labels per bottle |
6,525 |
|
Machine setup |
Setups |
20,000 |
|
|
1.
value: 8 points
|
Determine the cost of each product line using ABC. (Round your answers to 2 decimal places. Omit the "$" sign in your response.) |
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|
||
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Liquid materials |
$ |
per gallon |
|
Dry materials |
$ |
per pound |
|
Utilities |
$ |
per MH |
|
Bottles |
$ |
per bottle |
|
Labeling |
$ |
per label |
|
Machine setup |
$ |
per setup |
|
|
|
|
PowerPunch |
SlimLife |
|
Liquid material |
$ |
$ |
|
Dry material |
|
|
|
Utilities |
|
|
|
Bottles |
|
|
|
Labeling |
|
|
|
Machine setup |
|
|
|
Product Cost |
$ |
$ |
|
|
Check My Work eBook Link References
2.
value: 5 points
|
What is the cost per bottle for PowerPunch? What is the cost per bottle of SlimLife? (Hint: Your answer should draw on the total cost for each product line computed in requirement 1. Round your answers to 2 decimal places. Omit the "$" sign in your response.) |
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|
PowerPunch |
SlimLife |
||
|
Total cost of line |
$ |
|
$ |
|
|
÷ Production volume |
÷ |
bottles |
÷ |
bottles |
|
Average cost per bottle |
$ |
/bottle |
$ |
/bottle |
|
|
Check My Work eBook Link References
3.
value: 5 points
|
If PowerPunch sells for $3.75 per bottle, how much profit does the company earn per bottle of PowerPunch that it sells? (Round your answers to 2 decimal places. Omit the "$" sign in your response.) |
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|
|
|
Price |
$ |
|
Mfg cost per bottle |
|
|
Profit per bottle |
$ |
|
|
12500
3
500
1400
37000
620
65
654
65
654
64
5
654
4
85
1400
31
54
620
1422
