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Question 12.1: Rustic Breweries Ltd has just one product, a bitter beer mar...

Rustic Breweries Ltd has just one product, a bitter beer marketed as Old Rustic, and last company produced 40,000 litres of it. The costs incurred were as follows:

         $
Labour 30,000
Ingredients 10,000
Fuel 5,000
Rent of brewery premises 11,000
Depreciation of brewery equipment 4,000
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The full cost per litre of producing Old Rustic is simply found by taking all of costs and dividing by the number of litres brewed:

$(30,000 + 10,000 + 5,000 +11,000 + 4,000)/40,000 = $1.50 per litre

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