Cost Management Case Study

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"Acctg-320 group project
11-6 Pop's Incorporated

Variable
Raw material cost
Ingredient% of formulacost per liter of ingredient Carbonated Water73.00% $0.08 $0.0584
High Fructose Corn Syrup11.20% 0.49 0.0549
Sugar6.30% 0.37 0.0233
Carmel Color3.00% 1.40 0.0420
Phosphoric Acid2.70% 0.10 0.0027
Caffeine2.10% 0.12 0.0025
Citric Acid1.10% 0.15 0.0017
Cola Flavor0.60% 4.11 0.0247
100.00% $6.82 $0.2101
packing material cost
cost12 packs
355ml cans$251000$0.0250per can$0.3000
355ml Lid710000.0070 per lid0.0840
12 pack carton17010000.1700 per 12 carton0.1700
$0.5540
cost2 liter bottle
2 Liter bottle $120 10000.1200 per bottle0.1200 2 LiterInjected Molded2510000.0250 per lid0.0250
$0.1450
distributiontruckload$10/palleta truck
2 Liters100048014800.7708
12 Pack100048014800.1233

Fixed
mold costyearsper year
2,000,000.00 3.00 666,666.67 bottle
1,500,000.00 3.00 500,000.00

1 . per unit cost

Variable Cost4.2842.008
(1,000)12 packs (4.2840L)2 Liter (2.008L)
Raw Material $0.9272 $0.4346
shull making fee ($0.035) $0.1491 $1.0763 $0.0700 $0.5046 Packing Material$0.5651 $0.1479
shull packing fee$0.1800$0.7451 $0.0400 $0.1879 Distribution$0.1233 $0.7708
cost per unit $1.9447 $1.4633
cost per liter $0.4539 $0.7287

Fixed Cost/ Year
new molds $666,666.67
new equipment $500,000 500,000
incremental wage and benefit 300,000...
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