Serene Dairy Has 4 Product Lines: Sour Cream, Ice Cream

question 97

Multiple Choice

Serene Dairy has 4 product lines: sour cream, ice cream, yogurt, and butter.The total costs of producing the milk base for the products is $53,000 which has been allocated based on litres of milk base used by each product.Results of July follow: $\begin{array}{lccccc}&\text { Sour Cream } & \text {Ice Cream } & \text { Yogurt } & \text { Butter } & \text { Total }\\\hline\text { Units sold } & 1,700 & 750 & 500 & 5,000 & 7,950 \\\text { Revenue } & \$ 7,000 & \$ 15,000 & \$ 12,000 & \$ 25,000 & \$ 59,000 \\\text { Variable departmental costs } & 4,000 & 10,000 & 7,000 & 12,000 & 33,0000 \\\text { Fixed costs } & 4,500 & 1,000 & 2,000 & 6,000 & 13,500 \\\text { Net income (loss) } & \$ 1,500) & \$ 4,000 & \$ 3,000 & \$ 7,000 & \$ 12,500\end{array}$ How much are total joint costs of the products?

• A)$33,000
• B)$13,500
• C)$53,000
• D)$12,500

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Definitions:

Sense of Initiative

The motivation or drive to take action or steps towards fulfilling goals or engaging in creative problem-solving.

Zone of Proximal Development

A concept in educational psychology introduced by Lev Vygotsky, referring to the difference between what learners can do without help and what they can achieve with guidance and encouragement from a skilled partner.

Vygotsky

A Soviet psychologist known for his work on cognitive development, especially the concept of the zone of proximal development and the importance of social learning.

Erikson's Third Stage

In Erik Erikson's theory of psychosocial development, this stage, occurring between the ages of three and six years, focuses on the conflict between initiative versus guilt.