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

question 18

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. If the firm is currently processing all three products beyond split-off, the firm's income would be

• A)£736,000.
• B)£654,000.
• C)£596,000.
• D)£514,000.

---

Definitions:

Normative Decision Model

A framework that suggests leaders determine the best course of action based on normative rules and the involvement of team members.

Group Support

The assistance, encouragement, and resources provided by a collective to its members to achieve common goals or address individual needs.

Company-Wide Decision

A decision made that affects every individual and department within an organization.

Contingency Theory

A theoretical framework suggesting that the effectiveness of a leadership style is contingent on the situation or context.