Cool Sips Inc. manufactures and sells a nutrition drink for children. The company wants to develop a standard cost per gallon. The following
are required for production of a 100-gallon batch:
1960 ounces of lime Kool-Drink at $.15 per ounce
40 pounds of granulated sugar $.60 per pound
63 kiwi fruit at $.80 each
100 protein tablets at $.90 each
4000 ounces of water at $.0025 per ounce
Cool Sips estimates that 2% of the lime Kool-Drink is wasted 20% of the sugar is lost and 10% of the kiwis cannot be used.
Compute the standard cost of the ingredients for one gallon of the nutrition drink.
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