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What is minimum price that the company should set per bottle

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Question - Bright Day Company produces two beverages, Hi-Voltage and EasySlim. Data about these products follow.

Hi-Voltage

EasySlim

  Production volume

12,000  bottles

210,000  Bottles

  Liquid materials

2,000  gallons

31,000  gallons

  Dry materials

1,320  pounds

4,000  pounds

  Bottles

12,000  bottles

210,000  bottles

  Labels

4  labels per bottle

3  label per bottle

  Machine setups

1,000  setups

300 setups

  Machine hours

160  MH

3,900  MH

Additional data from its two production departments follow.

Determine the cost of each product line using ABC. What is the cost per bottle for Hi-Voltage and EasySlim?

Assume if Hi-Voltage sells for $7.45 per bottle, how much profit does the company earn per bottle of Hi-Voltage that it sells?

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

Reference no: EM131630196

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