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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