Canning Company Uses a Joint Process to Produce Products W,X,Y,and

question 106

Multiple Choice

Canning Company uses a joint process to produce products W,X,Y,and Z.Each product may be sold at its split-off point or processed further.Additional processing costs of specific products are entirely variable.Joint processing costs for a single batch of joint products are $120,000.Other relevant data are as follows: $\begin{array}{lll}& \text { Sales Value } & \text { Additional } & \text { Sales Value of } \\\text { Product } & \text { at Split-Off } & \text { Processing Costs } & \text { Final Froduct }\\W&\$ 40,000 & \$ 60,000 & \$ 80,000 \\X&\$ 12,000 & \$ 4,000 & \$ 20,000 \\Y&\$ 20,000 & \$ 32,000 & \$ 120,000 \\Z&\$ 28,000 & \$ 20,000 & \$ 32,000 \\&\$ 100.000 & \$ 116000 & \$ 252,000\end{array}$ Which of the following actions should be taken by Canning?

• A) Process W further.
• B) Sell X now.
• C) Process Y further.
• D) Process Z further.

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Definitions:

Kyoto Protocol

An international treaty that commits its Parties by setting internationally binding emission reduction targets to mitigate the effects of climate change.

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The overall impression created by all elements of an advertisement or communication, considered as a whole.

FTC Act

Refers to the Federal Trade Commission Act which established the Federal Trade Commission (FTC) and empowers it to prevent unfair competition and prohibit deceptive practices in commerce.

Misleading Claim

False or deceptive statements made about a product or service that can confuse the consumers or lead them to have incorrect impressions.