The Wyeth Company Produces Three Products-A,B,and C-From a Single Raw

question 75

Multiple Choice

The Wyeth Company produces three products-A,B,and C-from a single raw material input.Product A can be sold at the split-off point for $40,000,or it can be processed further at a total cost of $15,000 and then sold for $58,000.Joint product costs total $60,000 annually.What is the correct course of action regarding Product A?

• A) It should be discontinued since revenues after further processing are less than total joint product costs.
• B) It should be sold at the split-off point.
• C) It should be processed further and then sold.
• D) It should be processed further only if its share of the total joint product costs is less than the incremental revenues from further processing.

---

Definitions:

Relatively Refractory

The state of an axon in the later phase of an action potential, during which higher-intensity electrical current is required to produce another action potential; a phase during which potassium channels are still open.

Periods

In geology, divisions of geological time; in biology, typically refers to the menstrual cycle, a regular natural change that occurs in the reproductive system.

EPSP

Excitatory postsynaptic potential; a temporary increase in postsynaptic membrane potential caused by the flow of positively charged ions into the postsynaptic cell, making it more likely for a neuron to fire.

IPSP

Inhibitory postsynaptic potential, a type of synaptic potential that makes a neuron less likely to generate an action potential.