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The cost of energy consumed in producing units in the bottling department of mountain springs water...

The cost of energy consumed in producing units in the bottling department of mountain springs water company was $603 and $1050 for june and july respectively. The number of equivalent units produced in June and July was 6700 and 7500 liters respectively. Evaluate the change in the cost of energy between the two months Energy cost per liter, June ___ Energy cost per liter, July ___ the cost of energy has increased by _____

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Answer #1

the given information in the question is the cost of energy consumed in producing units of water department of mountain springs water company for two different months are as follows

Cost for the month of June is $603

Cost for the month of July is $1050

The units produced in the month of June is 6700 litres

The units produced in the month of July is 7500 litres

Now we can calculate the cost incurred for each litre in the the two months

Cost incurred for one litre in the month of June is

= $603 ÷ 6700

= $0.09

Cost incurred for one litre in the month of July is

= $1050 ÷ 7500

= $0.14

The change in cost of incurred for 1 litre is as follows

= Cost incurred in the month of July less cost incurred in the month of June

= 0.14 - 0.09

= - $0.05

The result is 0.05

By the above calculation we can know that cost of energy consumed in in producing units in the bottling department is 0.05

The energy cost per litre in June is $0.09

The energy cost per litre in July is $0.14

The increase in energy cost per litre is $0.05 per litre.

These are all the information and calculations required to solve the above given question.

I have, all the above given explorations and calculations are useful and helpful to you.

Thank you.

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