Use the Following to Answer Questions

question 14

Multiple Choice

Use the following to answer questions
JJ Enterprises currently manufactures two products, A and B. It is considering adding a new product, Product C. The following table shows current information for products A and B, as well as projected data for Product C.
*NOTE: If Product C is produced, one-fourth of the company's common costs, which are fixed costs, will be allocated to Product C, with one-half and one-fourth allocated to products A and B, respectively.
-If JJ Enterprises adds Product C,the total incremental revenue will be:

• A)$1,125,000
• B)$ 200,000
• C)$ 70,000
• D)$ 7,500

---

Definitions:

Ambrosia

In classical mythology, the food of the gods, believed to convey immortality; in contemporary contexts, a type of fruit salad.

Bubble Gum

A kind of bubble gum made to be blown into a bubble outside the mouth.

Income

Earnings received by individuals or entities, typically through wages, investments, or other sources.

Sociology

The study of the development, structure, and functioning of human society, including social relationships, institutions, and cultures.