The Green Company Processes Unprocessed Goat Milk Up to the Split-Off

question 14

Multiple Choice

The Green Company processes unprocessed goat milk up to the split-off point where two products,condensed goat milk and skim goat milk result.The following information was collected for the month of October:

The costs of purchasing the of unprocessed goat milk and processing it up to the split-off point to yield a total of 102,500 gallons of saleable product was $186,480.There were no inventory balances of either product.Condensed goat milk may be processed further to yield 42,500 gallons (the remainder is shrinkage) of a medicinal milk product,Xyla,for an additional processing cost of $3 per usable gallon.Xyla can be sold for $21 per gallon.
Skim goat milk can be processed further to yield 58,200 gallons of skim goat ice cream,for an additional processing cost per usable gallon of $3.The product can be sold for $8 per gallon.
There are no beginning and ending inventory balances.
Using the sales value at split-off method,what is the gross-margin percentage for condensed goat milk at the split-off point? (Round intermediary percentages to the nearest hundredth. )

• A)49.63%
• B)50.00%
• C)42.60%
• D)50.37%

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Definitions:

Cold Application

A method used to reduce swelling and pain by applying ice or cold packs to the affected area.

Sprain

An injury to a ligament caused by tearing or stretching beyond its capacity, often occurring in ankles, knees, or wrists.

Hot Compresses

Therapeutic applications of warmth to body parts using a cloth soaked in hot water or a heating pad to relieve pain or discomfort.

Open Wound

A type of injury where the skin is torn, pierced, or cut, leading to an exposed underlying tissue and possibly an increased risk of infection and bleeding.