Dowchow Company Makes Two Products from a Common Input $\$ 38,400$

question 3

Multiple Choice

Dowchow Company makes two products from a common input. Joint processing costs up to the split-off point total $\$ 38,400$ 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:

$\begin{array}{|l|r|r|r|}\hline & \text { Product X } & \text { Product Y } & \text { Total } \\\hline \text { Allocated Joint Processing Costs } & 20,800 & 17,600 & 38,400 \\\hline \text { Sales Value at Split-Off Point } & 26,000 & 22,000 & 48,000 \\\hline \text { Costs of Further Processing } & 22,600 & 20,400 & 43,000 \\\hline \text { Sales Value after Further Processing } & 45,000 & 45,900 & 90,900 \\\hline\end{array}$
-What is the net monetary advantage of processing Product Y beyond the split-off point?

• A) $3,500.
• B) $7,900.
• C) $25,500.
• D) $29,900.

Understand the impact of individual preferences on collective decisions.

Explain the relationship between private consumption expenditures and the provision of public goods.

Understand the economic principles behind publishing textbooks and the impact of new editions on market dynamics.

Grasp the basics of systems competition and its implications for firms like Intel and Microsoft.

---

Definitions:

Agreeableness

A personality trait characterized by compassion, cooperativeness, and a desire to maintain positive social relationships.

Leadership Traits

Characteristics or qualities that are commonly found in effective leaders, such as integrity, determination, and communication skills.

Leader Behaviours

The actions and practices displayed by a leader, which influence the motivation, performance, and well-being of their followers.

Leadership Effectiveness

The degree to which a leader successfully influences others towards achieving defined organizational or group goals.