Mayfair Corporation Has a Joint Process That Produces Three Products

question 85

Multiple Choice

Mayfair Corporation has a joint process that produces three products: P,G and A.Each product may be sold at split-off or processed further and then sold.Joint-processing costs for a year amount to $15,000.Other data follows:
$\begin{array}{llll}&\text { Sales Value }&\text {Separable Processing }&\text {Sales Value }\\ \text {Product }&\text {at Split-Off}&\text {Costs after Split-Off }&\text { at Completion}\\\mathrm{P} & \$ 62,000 & \$ 5,000 & \$ 88,000 \\\mathrm{G} & 12,500 & 6,500 & 19,500 \\\mathrm{~A} & 9,400 & 5,000 & 12,000\end{array}$
Processing Product G beyond the split-off point will cause profits to ________.

• A) be unchanged
• B) increase by $500
• C) increase by $1,000
• D) increase by $7,000

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Definitions:

Bogie Centerline

The central line running through a bogie, which is a framework carrying wheels, attached to vehicles such as trains or trailers, aiding in stability and balance.

Bridge Formula

Used to determine how a truck and semi-trailer support their respective loads. Generally, if a trailer sliding bogie is moved forward, the percentage of load supported by the tractor decreases. Bridge formula is also used to determine how tractor axles are loaded when the fifth wheel position is altered. Moving a sliding fifth wheel forward takes load off the drive bogies and transfers it to the steer axle.

Sliding 5th Wheel

An adjustable coupling mechanism on a semi-trailer that allows for the repositioning of the trailer's weight distribution.

Affects

Refers to the emotional or psychological impact or influence something has on a person's feelings or emotions.