The Laino Corp

question 41

Multiple Choice

The Laino Corp. takes a single ingredient and makes it into three different products. The joint costs of buying the ingredient and dividing it into these three products are $10,000 per metric ton of the ingredient. From every metric ton of ingredients, the company produces 400 kilograms of Product A, 400 kilograms of Product B, and 200 kilograms of Product C. Product A can be sold at the split-off point for $10 per kilogram, B can be sold for $15 per kilogram, and C can be sold for $20 per kilog

• A) 2000
• B) 3333
• C) 4000
• D) 4285

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Definitions:

Recover

The act of getting something back that was lost or taken away.

Strict Liability

A legal principle that holds parties responsible for damages or harm caused by their actions, without the need for proving negligence or fault.

Obstacles to Recovery

Factors or circumstances that hinder or prevent an individual or entity from recovering from a loss or injury.

Section 402A

A section of the Restatement (Second) of Torts that established the principle of strict liability for defective products, making manufacturers and sellers liable for damages caused by defective products.