epage. Slippery R: × / D Chapter 10 Homework × ezto.mheducation.com/hm..tpx 0.50
ID: 2588956 • Letter: E
Question
epage. Slippery R: × / D Chapter 10 Homework × ezto.mheducation.com/hm..tpx 0.50 points Dorsey Company manufactures three products from a common input in a joint processing operation Joirt processing costs up to the split-off point total S95,000 per quarter. The company allocates these costs to the joint products on the basis of their relative sales value at the split-off point Unit selling prices and total output at the split-off point are as follows Quarterly Output 17,000 pounds 22,000 pounds 7,000 gallons Product Selling Price 5 3 per pound $ 4 per pound $ 9 per gallon Each product can be processed further after the split-off point. Additional processing requires no special given below Additional Product Processing CostsSelling Price $ 5 per pound $ 7 per pound $ 11 per gallon S 37,000 S 11,500 a. Compute the incremental profit (loss) for each product Product A Product B Product Selling price after further processing Selling price at the split-off point Incremental revenue per pound or gallon Total quarterly output in pounds or gallons Total incremental revenue Total incremental processing costs Total incremental profit or loss b Which product or products should be sold at the spla-off point? (You may select more than one answer. Single click the box with a check mark tor correct answers and double click to empty the box for the wrong answers.) Product A product BExplanation / Answer
product product Product A B C Selling price after further processing 5 7 11 selling price at the split off point 3 4 9 incremental revenue per pound or gallon 2 3 2 total quarterly output in pounds or gallons 17,000 22,000 7,000 total incremental revenue 34,000 66,000 14,000 total incremental processign csots 41,000 37,500 11,500 total incremental profit or loss -7,000 28,500 2,500 product A should be sold at split off point
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.