I am currently runs a plastics plant that manufactures soda bottles. For the 2-liter bottle line, fixed costs run 0.7cents per bottle and variable costs currently run 0.8cents. If the market price for bottles drops to 1.3cents, I should stop production on the 2-liter line. Is it true or false?
I am currently runs a plastics plant that manufactures soda bottles. For the 2-liter bottle line,...
Budget Performance Report McAlisters Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: Cost Category Standard Cost per 100 Two-Liter Bottles Direct labor $1.52 Direct materials 5.40 Factory overhead 0.40 Total $7.32 At the beginning of May, McAlisters Bottle’s management planned to produce 580,000 bottles. The actual number of bottles produced for May was 630,000 bottles. The actual costs for May of the current year were as follows: Cost...
Direct Materials Purchases Budget Soda Company is the largest bottler in Western Europe. The company purchases Brand 1 and Brand 2 concentrate from The Soda Company, dilutes and mixes the concentrate with carbonated water, and then fills the blended beverage into cans or plastic two-liter bottles. Assume that the estimated production for Brand 1 and Brand 2 two-liter bottles at the Wakefield, UK, bottling plant are as follows for the month of May: Brand 1 107,000 two-liter bottles Brand 2...
Relling Corporation manufactures a drink bottle, model CL24. During 2020, Reling produced 250,000 bottles at a total cost of $900,000. Young Corporation has offered to supply as marry bottles as Relling wants at a cost of $3.50 per bottle. Relling anticipates needing 263,000 bottles each year for the next few years. Read the requirements per bottle is Requirement la. What is the average cost of manufacturing a drink bottle in 2020? How does it compare to Young's offer? The average...
Grant Corporation manufactures a drink bottle, model CL24. During 2017, Grant produced 220,000 bottles at a total cost of $990,000. Young Corporation has offered to supply as many bottles as Grant wants at a cost of $4.40 per bottle. Grant anticipates needing 235,000 bottles each year for the next few years. Read the requirements. Requirement 1a. What is the average cost of manufacturing a drink bottle in 2017? How does it compare to Young's offer? The average cost of $...
Question 1 CrystalClear supplies 75-centiliter glass bottles to beverage manufacturers all around Europe. The company’s best selling products are wine bottles and champagne bottles. Wine bottles are sold at a price of 3euro/unit, and champagne bottles are sold at 3.5 euro/unit. These two products can be manufactured in three different production lines: PL1, PL2 and PL3. These production lines present a different variable cost per unit per product (see Table 1). They also have a limited capacity of 1000 bottles...
Reling Corporation manufactures a drink bottle, model CL24 During 2000, Reling produced 250,000 bottles at a total cost of $900,000 Young Corporation has offered to supply as many bottles as Reling warts at a cost of $3.50 per borte. Reling anticipates needing 263,000 bottles each year for the next few years Read the gamers The average cost of per bottle than Young's offer Requirement 16. Can Reling use the answer in requirement la to determine the cost of manufacturing 263,000...
Amazon Beverages produces and bottles a line of soft drinks using exotic fruits from Latin America and Asia. The manufacturing process entails mixing and adding juices and coloring ingredients at the bottling plant, which is a part of Mixing Division. The finished product is packaged in a company-produced glass bottle and packed in cases of 24 bottles each. Because the appearance of the bottle heavily influences sales volume, Amazon developed a unique bottle production process at the company's container plant,...
Amazon Beverages produces and bottles a line of soft drinks using exotic fruits from Latin America and Asia. The manufacturing process entails mixing and adding juices and coloring ingredients at the bottling plant, which is a part of Mixing Division. The finished product is packaged in a company-produced glass bottle and packed in cases of 24 bottles each. Because the appearance of the bottle heavily influences sales volume, Amazon developed a unique bottle production process at the company’s container plant, which...
III) A) The Sirap Co. manufactures plastic bottles for its medicinal products. The manufacturing cost is $67 per batch of 100 bottles. This includes fixed costs of $22 per batch. A proposal is received to purchase the bottles from an outside source for $35 per batch, plus freight charges at $5 per batch. Prepare a differential analysis to show in good form if Sirap Co. should continue making the bottles, Alterative One or choose Alternative Two buying from an outside...
Amazon Beverages produces and bottles a line of soft drinks using exotic fruits from Latin America and Asia. The manufacturing process entails mixing and adding juices and coloring ingredients at the bottling plant, which is a part of Mixing Division. The finished product is packaged in a company-produced glass bottle and packed in cases of 24 bottles each. Because the appearance of the bottle heavily influences sales volume, Amazon developed a unique bottle production process at the company's container plant,...