Dock Corporation Makes Two Products from a Common Input

question 70

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 minimum amount the company should accept for Product X if it is to be sold at the split-off point?

• A) $31,800
• B) $20,500
• C) $16,800
• D) $35,500

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Definitions:

Descriptive/Correlational

A type of research method that involves observing and describing the behavior of a subject without influencing it in any way.

Experimental

Pertaining to or based on a trial or test to discover, demonstrate, or test something, especially within the context of scientific research.

Research Methods

The various strategies, techniques, and tools used by scientists to gather and analyze data.

Scientific Approach

A method of research whereby a problem is identified, relevant data is gathered, a hypothesis is formulated, and the hypothesis is empirically tested.