Serene Dairy Has Four Product Lines: Sour Cream Ice Cream

question 49

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 $45000 which has been allocated based on the gallons of milk base used by each product.Results for July follow: $\begin{array} { l } & \text {Sour Cream }& \text { Ice Cream}& \text { Yogurt}& \text { Butter }& \text { Total}\\ \text {Units sold }&2,000&500&400&2,000&4,900\\ \text {revenue }&\$10,000&\$20,000&\$10,000&\$20,000&\$60,000\\ \text {Variable departmental costs }&6,000&13,000&4,200&4,800&28,000\\ \text {Fixed costs }&5,000&2,000&3,000&7,000&17,000\\ \text {Net income (loss) }&\$1,000&\$5,000&\$2,800&\$8,200&\$15,000\\\end{array}$
How much are total joint costs of the products?

• A)$28000
• B)$17000
• C)$45000
• D)$15000

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