Answer the Following Questions Using the Information Below:
Bismite Corporation

question 12

Multiple Choice

Answer the following questions using the information below:
Bismite Corporation purchases trees from Cheney lumber and processes them up to the splitoff point where two products (paper and pencil casings) are obtained. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of October:
$\begin{array}{lll}\text { Trees processed: } & 250 \text { trees } & \\\text { Production: } & \text { paper } & 180,000 \text { sheets } \\& \text { pencil casings } & 180,000 \\\text { Sales: } & \text { paper } & 174,000 \text { at } \$ 0.12 \text { per page } \\& \text { pencil casings } & 178,500 \text { at } \$ 0.15 \text { per casing }\end{array}$ The cost of purchasing 250 trees and processing them up to the splitoff point to yield 180,000 sheets of paper and 180,000 pencil casings is $12,500.
Bismite's accounting department reported no beginning inventory.
-What are the paper's and the pencil's approximate weighted cost proportions using the sales value at splitoff method,respectively?

• A) 50.00% and 50.00%
• B) 33.33% and 66.67%
• C) 31.82% and 68.18%
• D) 44.44% and 55.56%

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Definitions:

Zero-Sum Game

A situation in which one party’s gain is exactly balanced by another party's loss, ensuring that the total value in the system remains unchanged.

Wage Increases

Adjustments to employees' salaries, typically upward, often as a result of negotiations between employers and employees or their representatives.

Safety Standards

Regulations and guidelines designed to ensure the health and safety of workers in their workplace environment.

Attitudinal Structuring

The process of influencing the attitudes, perceptions, and relationships between negotiators to facilitate agreement and improve labor relations.