Soren Company Makes Two Products from a Joint Input That

question 28

Multiple Choice

Soren Company makes two products from a joint input that have the following information: $\begin{array}{lrrrr}&\text { Units } & \text { Sales Value } & \text { Total Additional } & \text { Sales Value } \\&&\text { Per Unit } & \text { Processing } & \text { Per Unit After } \\&\text { Produced } & \text { At Split-Off } & \text { Costs } & \text { Additional Processing }\\\hline\text { Product A } & 40,000 & \$ 10 & \$ 400,000 & \$ 15 \\\text { Product B } & 150.000 & 4 & 300,000 & 7\end{array}$ The joint cost incurred to produce the two products to the split-off point is $600,000. How much joint cost should be allocated to Product A using the relative sales value at split-off as the allocation method?

• A) $600,000
• B) $126,316
• C) $400,000
• D) $240,000

Understand the various perspectives and theories of ethical behavior in business.

Identify what constitutes ethical dilemmas and how they manifest in professional settings.

Recognize the importance of ethical behavior in enhancing corporate culture and stakeholder relationships.

Differentiate between the moral-rights view, utilitarian view, justice view, and individualism view of ethics.

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Definitions:

Net Sales

The total revenue generated from sales of goods or services, minus returns, allowances, and discounts.

Price-Earnings Ratio

A measure used to value a company that shows how much investors are willing to pay per dollar of earnings.

Earnings Per Share

A company's profit divided by the outstanding shares of its common stock, indicating profitability.

Market Price

The ongoing market price for an asset or service available for purchase or sale.