Information About Three Joint Products Follows The Cost of the Joint Process Is $140,000

question 44

Multiple Choice

Information about three joint products follows: $$\begin{array} { l c c c } & \underline { X } & \underline { Y } & \underline { Z } \\\text { Anticipated production } & 15,000 \mathrm { lbs } & 10,000 \mathrm { lbs } &8,750 \mathrm { lbs } \\\text { Selling price/lb. at split-off } & \$ 16 & \$ 26 & \$ 48 \\\text { Additional processing costs/lb. } \\\text { after split-off (all variable) } & \$ 8 & \$ 20 & \$ 20 \\\text { Selling price/lb. after further }\\\text { processing } & \$ 20 & \$ 40 & \$ 70\end{array}$$
The cost of the joint process is $140,000.
Assuming all of the sell now or process further decisions were correctly made, what will be the firm's income?

• A)$562,960
• B)$500,240
• C)$455,875
• D)$797,500

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Definitions:

Revenue

The entire financial income obtained from transactions involving the sale of products or the provision of services central to an organization's main operations.

Income Elasticity

A measure of how the demand for a good or service changes with a change in consumers' income.

Mobile Service

Telecommunication services provided through a network of base stations, enabling users to maintain communication without a fixed connection point.

Average Income

The mean income of a group, calculated by dividing the total income of the group by the number of individuals or entities in that group.