Use the Information Below to Answer the Following Question(s)

question 5

Multiple Choice

Use the information below to answer the following question(s) .Chem Manufacturing Company processes direct materials up to the splitoff point, where two products (X and Y) are obtained and sold.The following information was collected for the month of November.Direct materials processed:
10,000 litres (10,000 litres yield 9,500 litres of good product and 500 litres of shrinkage)
The cost of purchasing 10,000 litres of direct materials and processing it up to the splitoff point to yield a total of 9,500 litres of good products was $975,000.The beginning inventories totalled 50 litres for X and 25 litres for Y.Ending inventory amounts reflected 300 litres of product X and 525 litres of product Y.October costs were per unit were the same as November.
-What is product X's approximate gross margin percentage using the physical volume method?

• A)30%
• B)32%
• C)33%
• D)35%
• E)38%

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Definitions:

π Network

The conjugated system of pi bonds found in molecules where alternating single and double bonds allow for delocalization of electrons across the structure.

Aromatic Structures

Compounds containing one or more benzene rings, characterized by a stable ring of atoms with delocalized electrons.

NonAromatic

Molecules or compounds that do not contain a ring of continuously overlapping p orbitals, thus lacking the stability associated with aromatic systems.

π Network

An extended system of π bonds in a molecule, which can involve multiple atoms contributing p orbitals for delocalized electron sharing.