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

question 18

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: $\begin{array}{lrrrrr}&\text { Sour Cream}&\text { lce Cream}&\text {Yogurt }&\text {Butter }&\text {Total }\\\text { Units sold } & 2,000 & 500 & 400 & 2,000 & 4,900 \\\text { Revenue } & \$ 10,000 & \$ 20,000 & \$ 10,000 & \$ 20,000 & \$ 60,000 \\\text { Variable departmental costs } & 6,000 & 13,000 & 4,200 & 4,800 & 28,000 \\\text { Fixed costs } & 5,000 & 2,000 & 3,000 & 7,000 & 17,000\\\text { Net income (loss) }&\$(1,000) &\$5,000&\$2,800&\$8,200&\$15,000\end{array}$ How much are total joint costs of the products?

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

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Definitions:

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Physical or psychological symptoms that occur after stopping or reducing intake of a substance that has been used regularly.

Withdrawal Symptoms

Physical and mental symptoms that occur after stopping or reducing intake of a substance (such as drugs) that one is physically dependent on.

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A state of being under the influence of alcohol or drugs, which impairs cognitive and physical abilities.

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A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.