Available and Interested Potential Investors in the Energy Drink Research Paper

Available and Interested Potential Investors in the Energy Drink Industry - look into Paper ExampleFor the energy deglutition, the net profit value as a percentage of sales is estimated at between 12% to 18%. That the unflinching cost will be estimated as the difference of the gross profit and the net profit figures That the direct costs both for materials and labor is estimated at between 22% to 27% of the sales figure. 2. Assuming the drink being produced is of the 250ml packet in a bottle type of packaging. Assuming the number of wholes of the drink produced is 6000 units, the covariant cost per unit is provided as follows - direct materials $2, direct labor $4, variable manufacturing overhead $1, variable selling and administration expenses $3. The fixed costs of the product per annum atomic number 18 estimated as follows fixed manufacturing overhead $30,000 and fixed selling and administration is $10,000. The selling price per unit produced is estimated at $15. The marginal costing statement will count as follows Product cost per unit Direct materials $2 Direct labor $4 Variable manufacturing overhead $1 Product cost per unit $7 The variable costs for the production of the drink for the 6000 units will be 6000*$7 = $42000. The costs for the production of the drink for the whole year will, therefore, be as follows Total variable costs $42000 Fixed manufacturing overhead $30000 Fixed selling and administration $10000 Total costs $82000 The total cost per unit for the drink per month will be $82000/12 = $6833.3. The $30000 fixed manufacturing overhead will be is charged off in total against the income as a geological period expense. The same applies to the selling and administration expense. Under this form of costing system, all the variable costs of production are included in the product cost.