Two Products, QI and VH, Emerge from a Joint Process

question 397

Multiple Choice

Two products, QI and VH, emerge from a joint process. Product QI has been allocated $9,600 of the total joint costs of $12,000. A total of 9,000 units of product QI are produced from the joint process. Product QI can be sold at the split-off point for $13 per unit, or it can be processed further for an additional total cost of $54,000 and then sold for $18 per unit. If product QI is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point?

• A) ($18,600)
• B) $108,000
• C) $600
• D) ($9,000)

---

Definitions:

Same-Sex Harassment

Unwelcome behavior or actions based on sexual orientation, directed at an individual by someone of the same sex.

Title VII

A section of the Civil Rights Act of 1964 prohibiting employment discrimination based on race, color, religion, sex, or national origin.

Civil Rights Act

A landmark piece of legislation aimed at outlawing discrimination based on race, color, religion, sex, or national origin.

At-Will Employment

Employment arrangement where either the employer or the employee can terminate the employment relationship at any time without prior notice, for any reason not prohibited by law.