The Carter Corporation Makes Products a and B in a Joint

question 97

Multiple Choice

The Carter Corporation makes products A and B in a joint process from a single input, R. During a typical production run, 50,000 units of R yield 20,000 units of A and 30,000 units of B at the split-off point. Joint production costs total $90,000 per production run. The unit selling price for A is $4.00 and for B is $3.80 at the split-off point. However, B can be processed further at a total cost of $60,000 and then sold for $7.00 per unit.
-In a decision between selling B at the split-off point or processing B further,which of the following items is not relevant:

• A) the $60,000 cost to process B beyond the split-off point.
• B) the $3.80 unit sales price of B at the split-off point.
• C) the portion of the $90,000 joint production cost allocated to B.
• D) the $7 unit selling price for B after further processing.

---

Definitions:

Figure And Ground

A principle in visual perception that describes how humans separate an object (the figure) from its surrounding area (the ground).

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli over time.

Feature Detectors

Neurons in the brain that respond to specific features of a stimulus, such as lines, edges, or movement, playing a crucial role in the process of perception.

Narrow Black-And-White Lines

A visual pattern typically consisting of slim, alternating black and white stripes.