A Joint Production Process at Happy Days Farms Results in Two

question 160

Multiple Choice

A joint production process at Happy Days Farms results in two products, blackberry syrup and blackberry jam. The following cost and activity data relate to these two products: Blackberry syrup can be sold as-is (at the split-off point) for $2.50 per unit, or it can be processed further into a specialty blackberry juice and then sold for $5.00 per unit. If blackberry syrup is processed further into the specialty blackberry juice, what would be the overall effect on operating income?

• A)$1,750 net increase in operating income
• B)$1,750 net decrease in operating income
• C)$3,750 net increase in operating income
• D)$3,750 net decrease in operating income

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Definitions:

Adolf Hitler

A German politician and leader of the Nazi Party who rose to power as Chancellor of Germany in 1933 and later Führer in 1934, initiating World War II and enacting policies that led to the Holocaust.

Legitimate Power

A form of authority that is recognized and accepted by individuals because it stems from a position of responsibility in a hierarchy.

Referent Power

A form of influence based on the attraction or admiration one person has for another, often because of the latter's charisma or likability.

Coercive Power

Coercive power is the ability to control others through the threat of punishment or the imposition of unpleasant consequences.