Use the Following Information for the Next 3 Questions

question 116

Multiple Choice

Use the following information for the next 3 questions.
Recyclers, Inc. reprocesses paper and obtains 2 main products, a by-product, and waste. By-product revenues are treated as a reduction in joint costs. During the period, 1,000 tons were processed at a cost of $12,000 for materials and processing, resulting in the following:
-If the firm allocates joint costs to the main products using the net realizable value, how much will be allocated to Main-1?

• A) $5,000
• B) $5,714
• C) $6,857
• D) $6,000

Identify the shutdown point and its implications for firm operations.

Understand the basic concepts and theories related to global inequality and poverty.

Identify the factors contributing to world poverty and the dynamics of the global stratification system.

Understand the role of modernization theory in economic development.

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Definitions:

Foot-In-The-Door Effect

A mental phenomenon wherein consenting to a minor request enhances the chances of acquiescing to a more significant request subsequently.

Low Balling

A persuasion technique often used in sales where an initially low price is presented to secure agreement from the buyer, only to increase the cost through the addition of extras or disclosure of hidden costs.

Social Conformity

The act of adjusting one's thoughts or behaviors in order to fit in with the norms or standards of a social group or society.

Door-In-The-Face Effect

A compliance technique whereby a large, unreasonable request is made first, followed by a smaller, more reasonable request, which is the actual desired outcome.