Information About Three Joint Products Follows The Cost of the Joint Process Is $60,000

question 43

Multiple Choice

Information about three joint products follows: $\begin{array}{lccc}&\underline{A}&\underline{B} &\underline{C}\\\text { Anticipated production } & 5,000 \mathrm{~kg} & 1,000 \mathrm{~kg} & 2,000 \mathrm{~kg} \\\begin{array}{l}\text { Selling price/kg at split-off } \\\text { Additional processing costs/ } \mathrm{kg}\end{array} & \$ 10 & \$ 30 & \$ 16 \\\begin{array}{l}\text { after split-off (all variable) }\end{array}& \$ 6 & \$ 12 & \$ 24 \\\begin{array}{l}\text { Selling price/kg after further } \\\text { processing }\end{array} &\$20&\$40&\$50 \\\end{array}$ The cost of the joint process is $60,000.Which of the joint products should be sold at split-off?

• A)joint product A
• B)joint product B
• C)joint product C
• D)both joint product A and joint product B

---

Definitions:

Coefficient of Correlation

The coefficient of correlation, also known as Pearson's r, measures the strength and direction of a linear relationship between two quantitative variables.

Marginal Probability

The probability of an event occurring in a probability distribution, regardless of the outcome of other variables.

Probability Distribution

A mathematical function that describes the likelihood of getting each possible value that a random variable can assume.

Car Sales

The number of automobiles sold within a specific time period.