Dock Corporation Makes Two Products from a Common Input

question 124

Multiple Choice

Dock Corporation makes two products from a common input. Joint processing costs up to the split-off point total $33,600 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point?

• A) $31,800
• B) $20,500
• C) $16,800
• D) $35,500

---

Definitions:

Micturition

The process of urination, or the act of expelling urine from the bladder.

Urochrome

The pigment that gives urine its typical yellow color, a product of the breakdown of hemoglobin.

Void

An empty space; a vacuum or gap.

Interstitial Cystitis

A chronic condition causing bladder pressure, bladder pain, and sometimes pelvic pain.