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

Grasp the principles behind setting prices through trade discount series.

Realize the importance of discounting practices in influencing stocking and purchasing decisions across the supply chain.

Understand the various types of discounts offered by sellers and manufacturers.

Identify and calculate the effective price after applying trade discounts.

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Definitions:

Scoria Cone

A small, steep-sided volcanic cone built from highly vesicular basaltic lava fragments.

Shield Volcano

A type of volcano with broad, gently sloping sides, formed by the eruption of highly fluid lava.

Composite Volcano

A type of volcano characterized by explosive eruptions and composed of alternating layers of lava and ash.

Caldera

A large volcanic crater, typically formed by a major eruption leading to the collapse of the mouth of the volcano.