Figure 6-10
Manning Company Uses a Joint Process to Produce

question 35

Multiple Choice

Figure 6-10
Manning Company uses a joint process to produce products W, X, Y, and Z. Each product may be sold at its split-off point or processed further. Additional processing costs of specific products are entirely variable. Joint processing costs for a single batch of joint products are £120,000. Other relevant data are as follows: $\begin{array}{crcr}& \text { Sales Value } & \text { Additional } & \text { Sales Value of } \\\text { Froduct } & \text { at Split-Off } & \text { Processing Costs } & \text { Final Product }\\\hline Y & £ 20,000 & £ 32,000 & £ 120,000 \\Z & 28,000 & 20,000 & 32,000 \\W & 40,000 & 60,000 & 80,000 \\X & 12,000 & 4,000 & 20,000 \\&£100,000&£116,000&£252,000\end{array}$
-Refer to Figure 6-10. Which products should Manning process further?

• A)all
• B)all except Z
• C)Y and X
• D)none

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Definitions:

J-curve

An economic theory describing a country's trade balance that initially worsens following a depreciation of its currency but then improves beyond its original level.

Social Unrest

A situation where a significant number of people in a community express dissatisfaction with socio-political conditions, potentially leading to protests or violence.

Collective Action

The action taken together by a group of people whose goal is to enhance their status and achieve a common objective.

Social Protest

A collective action or demonstration expressing opposition to, or support for, a cause, policy, or set of conditions.