Dock Corporation Makes Two Products from a Common Input

question 19

Multiple Choice

Dock Corporation makes two products from a common input. Joint processing costs up to the split-off point total $33,600 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below:

-What is the financial advantage (disadvantage) for the company of processing Product X beyond the split-off point?

• A) ($3,500)
• B) $27,700
• C) $20,500
• D) $3,700

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Definitions:

Man

A term often used to refer to adult human males, but also used generically to denote human beings regardless of sex or age.

One Wife

A marital practice where an individual is married to a single spouse at a time, also known as monogamy.

Patrilateral Parallel-cousin

A type of kinship relationship where children of a father's brother or a mother's sister are considered close relatives, often seen in cultures with strong patrilineal descent.

Parallel-cousin Marriage

A type of cousin marriage where individuals marry cousins from their parent's same sibling (e.g., two brothers' children or two sisters' children marrying each other).