Answer the Following Questions Using the Information Below:
Bismite Corporation

question 35

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.
-If the sales value at splitoff method is used,what is the approximate production cost for each paper sheet?

• A) $0.309
• B) $0.301
• C) $0.031
• D) $0.039

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Definitions:

Retail Context

The environment or circumstances surrounding the sale of goods to consumers, including the physical store layout, online presence, and customer service experience.

Consumer Anxiety

Refers to the feelings of worry and unease that consumers may experience before, during, or after making a purchase decision.

Expensive Brand

A brand perceived as high-cost due to its quality, exclusivity, or luxury status, often attracting a specific market segment.

Shopping Orientation

Refers to a consumer's general attitudes, behaviors, and intentions towards shopping, influenced by personal, social, and cultural factors.