The controller for Canandaigua Vineyards, Inc. has predicted the following costs

Question

The controller for Canandaigua Vineyards, Inc. has predicted the following costs at various levels of wine output Wine Output (075 Liter Bottles 15,000 Botties $55,500 00,000 10,000 Bottles 20,000 $ 84,000 100,000 40,000 $224,000 $ 37,000 Variable production costs Fxed production costs Fixed selling and administrative costs Total 100,000 40,000 40,000 S 177000$ $195,500 The company's marketing manager has predicted the following prices for the firm's fine wines at various levels of sales 10,000 Bottles S 18.00 Wine Sales 15,000 Bottles $ 15.00 20,000 Bottles $ 12.00 Sales price per 75 liter bottle Award: 20.00 points Required: 1-a Calculate the unit cost of wine production at each level of output. (Round your answers to 2 decimal places.) Output (0.75 liter Unit Cost 10,000 15,000 20,000

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars 10,000 Bottles 15,000 Bottles 20,000 Bottles Variable Production costs              37,000.00              55,500.00                 84,000.00 Fixed production costs            100,000.00           100,000.00               100,000.00 Total Manufacturing costs            137,000.00           155,500.00               184,000.00 Add OP WIP                             -                               -                                   -   Less Closing WIP                             -                               -                                   -   Cost of Goods manufactured            137,000.00           155,500.00               184,000.00 No of units              10,000.00              15,000.00                 20,000.00 Cost per unit                      13.70                      10.37                            9.20

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