The Parvis Paramount Pigsty (PPP)raises Pigs,from Which a Variety

question 7

Multiple Choice

The Parvis Paramount Pigsty (PPP) raises pigs,from which a variety of pork products are processed.The herd features the Danish Yorkshire,which typically reaches 105 kgs at maturity.The following table summarizes the production process of producing Porktry,Porfekt,and Porkatoo from one pig $\begin{array}{lrrr} & \text { Porktry } & \text { Porfekt } & \text { Porkatoo } \\\text { Weight, in kgs } & 45 & 20 & 35 \\\text { Sales price, kg } & € 22.50 & € 84.00 & € 28.00 \\\text { Processing costs per kg } & € 13.50 & € 50.40 & € 14.00\end{array}$
Previous research has indicated that raising a Danish Yorkshire from breeding to disposition costs an average of €3 per kg.The ratio of pig parts to products is relatively inflexible;as yet,bio-engineering has failed to produce pigs with other than four legs.Of the statements below,which is true of the allocation of the joint costs?

• A)By weight,Porktry is allocated €81.41
• B)By relative sales value,Porkatoo is allocated €80.05
• C)Since Porktry is the least profitable product,it should be discontinued and resources devoted to Porfekt
• D)By relative net realizable values,Porfekt is allocated €135.09
• E)None of the choices are correct

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Definitions:

Steep Mountain Front

A steep mountain front is a pronounced topographical feature where the slope of a mountain is dramatically steeper, often marking the boundary between differing geological formations.

River

A large, natural stream of water flowing in a channel to the sea, a lake, or another such stream.

Sand Dune

A hill or a ridge made of sand that has been shaped by the wind.

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Water located in deep areas of oceans or lakes, typically characterized by cold temperatures and high pressures.