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.

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Definitions:

Pre-Migration Labor Force

The workforce available in a region or country before significant migration flows occur.

Country of Origin

The country where goods were manufactured or produced, which can influence consumer perceptions and regulatory standards.

Labor Migration

The movement of workers from one area to another, often from one country to another, in search of better employment opportunities and living conditions.

Explicit Cost

Direct, out-of-pocket payments for goods or services used in the production of a product.