Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and the company’s production support activities follow.
|Department 1||Mixing||$||4,800||Machine hours||1,200|
|Department 2||Machine calibration||$||265,000||Production runs||400|
|Labeling||10,000||Cases of output||165,000|
|Defects||6,500||Cases of output||165,000|
|Support||Recipe formulation||$||93,000||Focus groups||60|
|Heat, lights, and water||30,000||Machine hours||1,200|
|Materials handling||68,000||Container types||10|
Additional production information about its two product lines follows.
|Extra Fine||Family Style|
Problem 04-5A Part 5
5. If the market price is $17 per case of Extra Fine and $8 per case of Family Style, determine the gross profit per case for each product. (Round your intermediate calculations and final answers to 2 decimal places.)