Figure 6-7
Suppose That a Concrete Manufacturer Produces Four Grades

question 40

Multiple Choice

Figure 6-7
Suppose that a concrete manufacturer produces four grades of concrete totaling 500,000 cubic yards as follows at a joint cost of £2,000,000: $$\begin{array} { c c c } \text { Grade } & \text { Cubic Yards } & \text { Sales Value } \\\text { A } & 75,000 & £ 375,000 \\\text { B } & 200,000 & 1,200,000 \\\text { C } & 100,000 & 700,000 \\\text { D } & 125,000 & 850,000\end{array}$$
-Refer to Figure 6-7. Grade C can be made into bricks. The final sales value will increase to £900,000. The additional cost to make the bricks is £250,000. Should the concrete be processed into bricks?

• A)Sell now.
• B)Produce bricks; profits will increase £200,000.
• C)Produce bricks; profits will increase £900,000.
• D)Produce bricks; profits will increase £450,000.

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Definitions:

Emotions

Complex psychophysiological experiences of an individual's state of mind as interacting with biochemical and environmental influences.

Bipolar Disorder

An emotional health issue defined by pronounced changes in mood, encompassing moments of high (mania or hypomania) and low (depression) emotional states.

Lithium

A chemical element used as a medication to treat and prevent episodes of mania in people with bipolar disorder.

Psychoanalysis

A therapeutic approach founded by Sigmund Freud, focusing on unconscious processes as they are manifested in a person's present behavior.