Conviser Tools Manufactures a Number of Products from the Same

question 67

Multiple Choice

Conviser Tools manufactures a number of products from the same raw material.Joint processing costs total $10,000.Product A could be sold at the cut-off point for $18,000 or it can be further processed at a cost of $9,000 and then sold for $35,000.Conviser should:

• A)Further process product A because its incremental revenues will exceed incremental costs by $8,000.
• B)Further process product A because its incremental revenues will exceed incremental costs by $26,000.
• C)Sell as-is because the incremental loss is $2,000 if processed further.
• D)Further process product A because its incremental revenues will exceed incremental costs by $16,000.

---

Definitions:

Aversion Therapy

A psychological treatment method where undesirable behaviors are paired with uncomfortable stimuli to reduce their occurrence.

Undesirable Behavior

Behavior that is deemed inappropriate or harmful by society, an organization, or the individual exhibiting the behavior.

Unpleasant Stimulus

A sensory input that is disagreeable or causes discomfort, leading to avoidance behavior in organisms.

Response Prevention

A therapeutic technique in behavioral therapy aimed at reducing the occurrence of unwanted behaviors by preventing the individual from performing their usual response to a trigger.