Tangerine Manufacturing Company Produces Three Products Using a Joint Process

question 28

Multiple Choice

Tangerine Manufacturing Company produces three products using a joint process which accumulates $25,000 in joint costs. The products, A, B, and C, can be sold at split- off or processed further and then sold. The production level for each product is 10,000 units. The following unit information is also available: $\begin{array}{llll}&&\text { Separable }\\&&\text { Processing }\\& \text { Sales V alue at } & \text { Costs after } & \text { Sales Value at } \\\text { Product } & \text { Split- off } & \underline{\text { Split-off }} & \text { Completion }\\\mathrm{A} & \$ 12 & \$ 9 & \$ 21 \\\mathrm{~B} & 10 & 4 & 17 \\\mathrm{C} & 15 & 6 & 19\end{array}$ If product A is processed beyond the split- off point, profit will:

• A) increase by $90,000
• B) stay the same
• C) increase by $210,000
• D) increase by $120,000

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Definitions:

Persuasive Message

A communication intended to influence the attitudes, beliefs, or behaviors of others by using specific techniques and appeals.

Rhetoric

The art or skill of effective communication and persuasion through the use of language.

Persuasive Process

A method of communication aimed at influencing the attitudes, beliefs, or behaviors of others.

Attitude Inoculation

A technique used to make people resistant to attempts to change their attitudes by first exposing them to small arguments against their position.