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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 flavored water and 500,000 packs of carbonated water. The predicted costs for the year are as follows. Variable Costs Fixed Costs $200,000 $600,000 150,000 700,000 Materials Other 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. CDs $ 765,000 X DVDs $ 765,000 X
Transcribed Image Text: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 flavored water and 500,000 packs of carbonated water. The predicted costs for the year are as follows. Variable Costs Fixed Costs $200,000 $600,000 150,000 700,000 Materials Other 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. CDs $ 765,000 X DVDs $ 765,000 X
(b) What is the total profit per product using the selling prices determined in part (a)? Use negative signs with answers, i if appropriate. CDs $Answer? DVDs $Answer?
Transcribed Image Text:(b) What is the total profit per product using the selling prices determined in part (a)? Use negative signs with answers, i if appropriate. CDs $Answer? DVDs $Answer?
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