Required information The following information applies to the questions displaye

Question

Required information The following information applies to the questions displayed below.] Sara's Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and the company's production support activities follow Driver $6,000 Machine hours Machine hours Activity Quantity 2,480 2,400 750 Process Overhead cost Department 1 Mixing Cooking Product testing 10,800 114,000 Batches 130,8e0 Department 2 Machine calibration Labeling Defects 325,00e 18,000 6,000 Production runs Cases of output Cases of output 650 160,000 160,000 349,000 $ 84,000 Recipe formulation Heat, lights, and water Materials handling Support Focus groups 42,000 Machine hours 80,900 Container types 50 2,400 10 $ 206,000 Additional production information about its two product lines follows. Extra Fine Family Style Units produced Batches Machine hours Focus groups Container types Production runs 35,000 cases 125,000 cases 350 batches 1,000 MH 400 batches 1,400 MH 34 groups 16 groups 4 containers 260 runs 6 containers 390 runs 5. If the market price is $15 per case of Extra Fine and $10 per case of Family Style, determine the gross profit per case for each product. (Round your intermediate calculations and final answers to 2 decimal places.) Extra Fine Family Style

Explanation / Answer

Solution: Considering the previous part of this question (which is already solved by you I guess) , the total cost per unit are as follows:

Considering the above facts related to the total cost per unit, the gross profit per case for each product are as follows:

Particulars Total cost per unit Extra fine $11.29 Family style $10.29

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