Fruitjuice ltd has just one product a sparkling orange, Finance Basics

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Fruitjuice ltd has just one product a sparkling orange

Question: Fruitjuice Ltd has just one product, a sparkling orange drink that is marketed as ‘Orange Fizz'. During last month the business produced 7,300 litres of the drink. The costs incurred were as follows:

£

- Ingredients (oranges and so on)        390
- Fuel                                                     85
- Rent of premises 350
- Depreciation of equipment    75
- Labour                                                 880

What is the full cost per litre of producing 'Orange fizz'?

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