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  • Mar 19, 2012, 08:49 PM
    ablack6
    Dan Engles manufactures and sells homemade wine, and he wants to develop a standard c
    Dan Engles manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 50-gallon batch.
    3,200 ounces of grape concentrate at $0.06 per ounce
    55 pounds of granulated sugar at $0.38 per pound
    62 lemons at $0.63 each
    50 yeast tablets at $0.26 each
    50 nutrient tablets at $0.21 each
    2,450 ounces of water at $0.008 per ounce

    Dan estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 20% of the lemons cannot be used.

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