A Cheese-Making Factory Buys Milk, and Turns the Milk into Two

question 63

Short Answer

A cheese-making factory buys milk, and turns the milk into two major products: cheese and butter. Here are some facts regarding its production during the year:
Pounds of cheese produced 3,000,000
Pounds of butter produced 3,000,000
Selling price per pound of butter $2
Selling price per pound of cheese $3
Joint costs of making the butter and the cheese $14,000,000