Balley, Inc If Balley Produces and Sells the Best Mix, What Is

question 116

Multiple Choice

Balley, Inc. produces three milk products (all are main products) from a joint process costing $200,000. Data from the current period's operation follow: $\begin{array}{lcccc}&\text { Units } & \text { Unit Sales Price } & \text { Separable } & \text { Total Revenue After }\\&\text { Produced} & \text { at Split-Off } & \text { Costs }& \text { Further Processing }\\\text { Regular } & 5,000 & \$ 5 & \$ 10,000 & \$ 40,000 \\\text { Fat-free } & 15,000 & 7 & 16,000 & 120,000 \\2 \% & 30,000 & 8 & 5,000 & 250,000\end{array}$

If Balley produces and sells the best mix, what is the total gross margin?

• A) $195,000
• B) $210,000
• C) $180,000
• D) $164,000

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Definitions:

Seismic Wave

Seismic waves are waves of energy that travel through the Earth's layers, resulting from earthquakes, volcanic eruptions, and other geologic processes.

Seismograms

Records produced by seismographs that display the intensity and duration of earthquake waves, used in the study and monitoring of seismic events.

Earthquake

A sudden shaking of the ground caused by the movement of tectonic plates at faults or by volcanic activity, often resulting in damage to structures.

Investigation

The systematic inquiry or study into something to establish facts and reach new conclusions.