Manning Company Uses a Joint Process to Produce Products W

question 62

Multiple Choice

Manning Company uses a joint process to produce products W, X, Y, and Z. Each product may be sold at its split-off point or processed further. Additional processing costs of specific products are entirely variable. Joint processing costs for a single batch of joint products are $120,000. Other relevant data are as follows:
$\begin{array}{cccc}& \text { Sales Value } & \text { Additional } & \text { Sales Value of } \\\text { Product } & \text { at Split-Off } & \text { Processing Costs } & \text { Final Product }\\\text { W } & \$ 40,000 & \$ 60,000 &\$ 80,000 \\ \mathrm{X} & \$ 12,000 & \$ 4,000 & \$20,000 \\ \mathrm{Y} & \$ 20,000 & \$ 32,000 & \$ 120,000 \\ \text { Z } & \$ 28,000 & \$ 20,000 & \$32,000 \\ & \$ 100,000 & \$1 16,000 & \$ 252,000 \\\end{array}$
-Refer to the figure.What effect will processing Y further have on profits?

• A)decrease by $32,000
• B)increase by $52,000
• C)increase by $68,000
• D)increase by $120,000

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Definitions:

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A proposed explanation for a phenomenon, set forth as a starting point for further investigation.

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Ensuring that individuals' identities are not disclosed in research findings, protecting their privacy and confidentiality.

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An American sociologist known for his research into sexual behavior and for his controversial study of anonymous male homosexual acts in public places.

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Pertaining to or dealing with morals or the principles of morality; concerning right and wrong behavior.