Serene Dairy Has Four Product Lines: Sour Cream, Ice Cream

question 112

Multiple Choice

Serene Dairy has four product lines: sour cream, ice cream, yogurt, and butter.The total cost of producing the milk base for the products is $45,000, which has been allocated based on the gallons of milk base used by each product.Results for July follow: $\begin{array}{lrrrrr}&\text {Sour Cream}&\text {Ice Cream}&\text {Yogurt}&\text {Butter}&\text {Total}\\\hline\text { Units sold } & 2,000 & 500 & 400 & 2,000 & 4,900 \\\text { Revenue } & \$ 10,000 & \$ 20,000 & \$ 10,000 & \$ 20,000 & \$ 60,000 \\\text { Variable departmental costs } & 6,000 & 13,000 & 4,200 & 4,800 & 28,000 \\\text { Fixed costs } & 5,000 & 2,000 & 3,000 & 7,000 & 17,000 \\\text { Net income (loss) }&\$(1,000) &\$5,000&\$2,800&\$8,200&\$15,000\end{array}$ How much are total joint costs of the products?

• A)$28,000
• B)$17,000
• C)$45,000
• D)$15,000

---

Definitions:

Detroit Area Survey

A research study or series of studies focusing on the demographics, attitudes, and conditions within the Detroit metropolitan area, often examining social and economic issues.

Ideal Neighborhood

A conceptual community characterized by optimal living conditions, including safety, accessibility, amenities, and social harmony.

Black Respondents

Individuals who identify as Black participating in surveys or research, providing valuable insights into their experiences and perspectives.

White Respondents

Individuals who identify as white when participating in surveys or studies, used in demographic and sociological research.