Garden of Eden Company Manufactures Two Products, Brights and Dulls

question 24

Multiple Choice

Garden of Eden Company manufactures two products, Brights and Dulls, from a joint process. A production run costs $50,000 and results in 250 units of Brights and 1,000 units of Dulls. Both products must be processed past the split-off point, incurring separable costs for Brights of $60 per unit and $40 per unit for Dulls. The market price is $250 for Brights and $200 for Dulls. What is the gross profit for Dulls assuming the constant gross margin percentage method is used?

• A)$120,000
• B)$150,000
• C)$37,500
• D)$200,000

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