Figure 6-11
Information About Three Joint Products Follows The Cost of the Joint Process Is £140,000

question 61

Multiple Choice

Figure 6-11
Information about three joint products follows: $\begin{array}{lccc}&\text {X}&\text {Y}&\text {Z}\\\text { Anticipated production } & 12,000 \mathrm{kgs} . & 8,000 \mathrm{kgs} . & 7,000 \mathrm{kgs} . \\\text { Selling price } / \mathrm{kg} . \text { at split-off }& £ 16 & £ 26 & £ 48 \\\text { Additional processing costs } / \mathrm{kg} .\\\text { after split-off (all variable) } & £ 8 & £ 20 & £ 20\\\text { Selling price } / \mathrm{kg} . \text { after further } \\\text { processing }&£20&£40&£70 \\\end{array}$
The cost of the joint process is £140,000.
-Refer to Figure 6-11. Which of the joint products should be processed further?

• A)X
• B)Y
• C)Z
• D)both X and Y

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Definitions:

Investment Opportunities

Options available to investors looking to allocate resources in a way that generates a financial return.

Mutually Exclusive

Decisions or events that cannot occur at the same time, implying that the selection of one precludes the selection of another.

Pay Back

The time period required for an investment to generate cash flow sufficient to recover its initial cost.

Cash Flows

The total amount of money being transferred into and out of a business, especially considered as affecting liquidity.