Marin Products Produces Three Products — DBB-1, DBB-2, and DBB-3

question 45

Multiple Choice

Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follows.The amount of joint costs allocated to product DBB-3 using the physical measure method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar) :

• A) $54,250.
• B) $757,800.
• C) $1,705,320.
• D) $49,200.
• E) $1,136,880.

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Definitions:

Sherman Act

A foundational antitrust law in the United States enacted in 1890 to combat monopolies and restrictions on competition, promoting fair competition for the benefit of consumers.

Clayton Act

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Anticompetitive Mergers

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