Tasty Beverages began business in 2010 selling bottles of a …
Tasty Beverages began business in 2010 selling bottles of a thirst-quenching drink. Production for the first year was 104,000 bottles, and sales were 98,000 bottles. The selling price per bottle was $3.10. Costs incurred during the year were as follows:Ingredients used …………………………………………..$56,000Direct labor ……………………………………………. 26,000Variable overhead ……………………………………… 48,000Fixed overhead ………………………………………… 5,200Variable selling expenses ……………………………….. 10,000Fixed selling and administrative expenses ………………. 28,000Total actual cost ……………………………………… $173,200For 2010:a. What was the production cost per bottle under variable costing?b. What was variable cost of goods sold?c. What was the contribution margin per bottle?d. What was the contribution margin ratio?
