Sara\'s Salsa Company produces its condiments in two types: Extra Fine for resta

Question

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 Overhead Activity Driver Quantity Process Department Mixing cost $ 5,800 Machine hours 2,200 Cooking Product testing 12,900 Machine hours 2,200 113,800 Batches 1,000 $132,500 Department Machine 2 $315,000 Production calibratior Labeling Defects 500 145,000 145,000 runs 20,000 ,000 Case output 9,000 Cases of output $344,000 Support Recipe formulation ? 82,000 Focus groups 40 Heat, lights, and water 33,000 Machine hours 2,200 Materials handling 78,000 Container types $193,000 Additional production information about its two product lines follows. Extra Fine Family Style Units produced Batches Machine hours Focus groups Container types Production runs 33,000 cases 112,000 cases 330 batches 670 batches 900 MH 1,300 MH 30 groups 10 groups 6 containers 2 containers 240 runs 260 runs 5. If the market price is $18 per case of Extra Fine and $12 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

Working -

Extra Fine Family Style Market Price     18 12 Sale    33,000 1,12,000 Total Sale Revenue         5,94,000 13,44,000 Total Cost         3,36,504 3,32,996 Gross Profit         2,57,496 10,11,004 Gross Profit Per Case 7.80        9.03

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