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Cost Management Case Study

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Cost Management Case Study
"Acctg-320 group project
11-6 Pop's Incorporated

Variable
Raw material cost
Ingredient % of formula cost per liter of ingredient
Carbonated Water 73.00% $0.08 $0.0584
High Fructose Corn Syrup 11.20% 0.49 0.0549
Sugar 6.30% 0.37 0.0233
Carmel Color 3.00% 1.40 0.0420
Phosphoric Acid 2.70% 0.10 0.0027
Caffeine 2.10% 0.12 0.0025
Citric Acid 1.10% 0.15 0.0017
Cola Flavor 0.60% 4.11 0.0247 100.00% $6.82 $0.2101 packing material cost cost 12 packs
355ml cans $25 1000 $0.0250 per can $0.3000
355ml Lid 7 1000 0.0070 per lid 0.0840
12 pack carton 170 1000 0.1700 per 12 carton 0.1700 $0.5540 cost 2 liter bottle
2 Liter bottle $120 1000 0.1200 per bottle 0.1200
2 LiterInjected Molded 25 1000 0.0250 per lid 0.0250 $0.1450 distribution truckload $10/pallet a truck
2 Liters 1000 480 1480 0.7708
12 Pack 1000 480 1480 0.1233 Fixed mold cost years per 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 Cost 4.284 2.008
(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
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