Ralston Tile Produces Three Types of Ceramic Tiles, Models 33

question 112

Short Answer

Ralston Tile produces three types of ceramic tiles, models 33, 41, and 56 from clay, which is mined in the Arizona desert.Budgeted data for next month follows: $\begin{array}{lrrr}&33&41&56\\\text { Units produced } & 3,000 & 4,500 & 6,000 \\\hline \text { Sales value at split-off per unit } & \$ 15 & \$ 18 & \$ 24 \\\text { Additional processing costs per unit } & \$ 4 & \$ 6 & \$ 7 \\\text { Joint production costs per unit } & \$ 2 & \$ 5 & \$ 5 \\\text { Sales value if processed further per unit } & \$ 20 & \$ 23 & \$ 32\end{array}$

The joint cost of mining the clay is $\$ 80,000$ . Which of the products should be produced beyond the split-off point?

$\quad\underline{33} \quad\quad \underline{41} \quad \underline{56}$
A. $\text { Yes\quad Yes\quad Yes }$
B. $\text { Yes \quad Yes\quad No }$
C. $\text { No } \quad \text { Yes } \quad \text { Yes }$
D. $\text { Yes } \quad \text { No } \quad \text { Yes }$

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Definitions:

One-on-one Observation

A safety measure where an individual, often a patient in a healthcare setting, is constantly monitored by a caregiver or professional to prevent harm to themselves or others.

Remove Risk Items

The process of eliminating objects or substances that could cause harm or pose a danger, particularly in a healthcare or therapeutic setting.

Sentinel Event

An unexpected occurrence involving death or serious physical or psychological injury, or the risk thereof, which necessitates immediate investigation and response.

Suicidal Tendencies

Patterns of thoughts or behaviors that indicate a higher risk of attempting suicide, often seen in individuals with a history of suicidal thoughts or attempts.