Product Pricing: Two Products Assume Spindrift Beverage Co. manufactures two products, flavored water and carbonated water, both on the same assembly lines and packaged 30 cans per pack. The predicted sales are 150,000 packs of flavore water and 500,000 packs of carbonated water. The predicted costs for the year are as follows. Variable Costs Fixed Costs Materials Other $200,000 $600,000 150,000 700,000 Flavored water uses 25% of the materials costs and 10% of the other costs. Carbonated water uses 75% of the materials costs and 90% of the other costs. The management of Spindrift desires an annual profit of $450,000. (a) What price should Spindrift charge for each pack if management believes the carbonated water. sells for twice the price of flavored water? Rounds answers to the nearest cent. CDs $ 1.7 DVDs $ 2.04 (b) What is the total profit per product using the selling prices determined in part (a)? Use negative signs with answers, if appropriate. x CDs $ 765,000

Product Pricing: Two Products Assume Spindrift Beverage Co. manufactures two products, flavored water and carbonated water, both on the same assembly lines and packaged 30 cans per pack. The predicted sales are 150,000 packs of flavore water and 500,000 packs of carbonated water. The predicted costs for the year are as follows. Variable Costs Fixed Costs Materials Other $200,000 $600,000 150,000 700,000 Flavored water uses 25% of the materials costs and 10% of the other costs. Carbonated water uses 75% of the materials costs and 90% of the other costs. The management of Spindrift desires an annual profit of $450,000. (a) What price should Spindrift charge for each pack if management believes the carbonated water. sells for twice the price of flavored water? Rounds answers to the nearest cent. CDs $ 1.7 DVDs $ 2.04 (b) What is the total profit per product using the selling prices determined in part (a)? Use negative signs with answers, if appropriate. x CDs $ 765,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 15DQ: How would reported income differ if LIFO rather than FIFO were used when purchase prices are rising?...

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Similar questions

How would reported income differ if LIFO rather than FIFO were used when purchase prices are rising? When purchase prices are falling?
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What are the formulas to calculate "sales" and "break-even sales" ? Plz do it asap thanks.
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What are the formulas to calculate "sales" and "break-even sales" . Answer please!