What is the cost per bottle for hi-voltage



Hi-Voltage     SlimLife          
  Production volume 12,000 bottles 230,000 bottles
  Liquid materials 2,200 gallons 25,000 gallons
  Dry materials 820 pounds 9,000 pounds
  Bottles 12,000 bottles 230,000 bottles
  Labels 4 labels per bottle 2 label per bottle
  Machine setups 1,000 setups 850 setups
  Machine hours 130 MH 3,900 MH

Additional data from its two production departments follow.
Department Driver Cost
Mixing department




Liquid materials   Gallons
$ 1,904
Dry materials   Pounds

7,365
Utilities   Machine hours

1,209
Bottling department




Bottles   Units
$ 72,600
Labeling   Labels per bottle

25,400
Machine setup   Setups

46,250

Required
1 &2.

Determine the cost of each product line using ABC. What is the cost per bottle for Hi-Voltage and EasySlim? (Do not round your intermediate calculations. Round "Activity Rate" answers to 2 decimal places.)



3.

Assume if Hi-Voltage sells for $6.25 per bottle, how much profit does the company earn per bottle of Hi-Voltage that it sells? (Do not round intermediate calculations and round your final answers to 2 decimal places.)



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

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