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Bright day company produces two beverages hi-voltage and

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?

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Accounting Basics: Bright day company produces two beverages hi-voltage and

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