The Carter Corporation makes products A and B in a joint process from a single input, R. During a typical production run, 50,000 units of R yield 20,000 units of A and 30,000 units of B at the split-off point. Joint production costs total $90,000 per production run. The unit selling price for A is $4.00 and for B is $3.80 at the split-off point. However, B can be processed further at a total cost of $60,000 and then sold for $7.00 per unit.In a decision between selling B at the split-off point or processing B further, which of the following items is not relevant:
A. the $3.80 unit sales price of B at the split-off point.
B. the $7 unit selling price for B after further processing.
C. the portion of the $90,000 joint production cost allocated to B.
D. the $60,000 cost to process B beyond the split-off point.
Answer: C
You might also like to view...
The cash flow on total assets ratio is computed by dividing ________ by ________.
What will be an ideal response?
The Overseas Private Investment Corporation (OPIC) only operates as an insuring agency for companies investing in less developed countries
Indicate whether the statement is true or false
A floating work unit is one means of controlling the fluctuations in the amount of work that has to be done in a given work unit
Indicate whether the statement is true or false.
Table 10-5 represents a solution for an integer programming problem. If this problem had been solved as a simple linear programming problem, what would you expect the value of the objective function to be?
A) less than 208 B) greater than 208 C) exactly 208 D) A or C E) B or C