Louie’s Market in University Bookstore :
Louie’s Market in University Bookstore
Louie’s Market in University Bookstore :
Louie’s Market in University Bookstore Cost Object: 1 20oz Diet Mountain Dew
Cost: $1.49
Fixed Costs :
Fixed Costs Rental of Machine (cooler)
Rent for Space
Sales people Salary
Plant Depreciation
Tax on Soda
Property Tax
Variable Costs :
Variable Costs Direct Materials
Shipping Costs
Monthly Inventory Purchased
Raw Materials (sugar)
Sunk Costs :
Sunk Costs Over purchase of Inventory
Theft
Expired Shelf Life
Research and Development
Direct Costs :
Direct Costs Direct Labor (Factory Workers)
Sugar
Syrup
Carbonated Water
Plastic
Equipment
Indirect Costs :
Indirect Costs Factory Manager’s Salary
Cleaning Products for Machinery
Machinery Repairs
Utilities
Plant Maintenance
Property Taxes
Label Adhesive
Opportunity Costs :
Opportunity Costs Financial Cost (Cost of Soda is greater than the Cost of Bottled Water)
Health Cost (Choosing a healthier option such as juice, milk, or water)
Brand Preference (preference Pepsi over Diet Mountain Dew) VS