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:

Ingrdients (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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Finance Basics: Fruitjuice ltd has just one product a sparkling orange

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