Question

In: Accounting

6. The cost of the pouring brand of scotch is $0.58 per ounce, and the cost...

6. The cost of the pouring brand of scotch is $0.58 per ounce, and the cost of club soda is $0.04 per ounce. Determine the cost of a scotch and soda from each of the following standard recipes.

a. 1 ounce of scotch and 6 ounces of club soda

b. 1 1/2 ounches of scotch and 7 ounces of club soda

c. 2 ounces of scotch and 6 ounces of club soda

7. In each of the examples in Question 6, determine sales price if the desired liqour cost percent is:

a. 20 percent

b. 25 percent

c. 18 percent

Solutions

Expert Solution

  • All working forms part of the answer
  • Following working table include answers to both-question 6 and 7

Rate per ounce

Case (a) cost

Case (b) cost

Case (c ) cost

Cost of scotch

$                             0.58 [given]

$                             0.58 [1x0.58]

$                         0.87 [1.5x0.58]

$                          1.16 [2x0.58]

Cost of club soda

$                             0.04 [given]

$                             0.24 [6x0.04]

$                         0.28 [7x0.04]

$                          0.24 [6x0.04]

A

Total cost [Answer 6]

$                             0.82

$                         1.15

$                          1.40

B=A/20%

Sales price if 20% [Answer 7]

$                             4.10

$                         5.75

$                          7.00

C=A/25%

Sales price if 25% [Answer 7]

$                             3.28

$                         4.60

$                          5.60

D=A/18%

Sales price if 18% [Answer 7]

$                             4.56

$                         6.39

$                          7.78


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