A Joint Production Process at Sunnybrook Farms Results in Two

question 243

Multiple Choice

A joint production process at Sunnybrook Farms results in two products, strawberry syrup and strawberry jam. Strawberry syrup can be further processed into strawberry juice, and strawberry jam can be further processed into specialty jams. The following cost and activity data relate to these two products:
If strawberry syrup is processed further into the specialty strawberry juice, what would be the overall effect on operating income assuming the same number of units will be produced?

• A) $5,000 net increase in operating income
• B) $5,000 net decrease in operating income
• C) $2,000 net increase in operating income
• D) $2,000 net decrease in operating income

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Definitions:

Charleston

A historic city in South Carolina, known for its rich history, well-preserved architecture, and as a pivotal site in both the American Revolution and Civil War.

Richest City

A city characterized by a high level of economic wealth, typically measured by gross domestic product (GDP) per capita, high average incomes, and a high standard of living.

British North America

The term given to British colonies in North America, mainly consisting of Canada and the Caribbean, before their independence or formation into present-day countries.

Atlantic Slave Trade

The transatlantic trading of African peoples, primarily to the Americas, for slave labor from the 16th to the 19th century.