The Macon Industries Started the Production of K1 (Its Main

question 37

Essay

The Macon Industries started the production of K1 (its main product)and S2 (its by-product)on January 2,2016.During 2016,7,500 units of K1 and 1,500 units of S2 were produced.In 2016,6,000 units of K1 and 1,000 units of S2 were sold at $57.00 and $1.10 per unit,respectively.Production was halted at the end of 2016 and the inventory was sold in 2017 at the normal selling prices.The joint production costs were $240,000 and are entirely avoidable.The separable costs to produce K1 were $2.60 per unit and to produce S2 were $0.45 per unit.Operating expenses were $60,000 in 2016 and $12,000 in 2017.Required:
a.Prepare an income statement for 2016 and 2017 assuming the "other revenue" method of accounting for by-products is used.b.Prepare an income statement for 2016 and 2017,assuming the "cost reduction" method of accounting for by-products is used.

Identify the factors that influence consumer purchasing decisions.

Grasp the role and impact of competitive advantage in marketing.

Recognize the importance of analyzing buying behavior for targeting markets.

Comprehend the relationship between sales forecasting and marketing planning.

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Definitions:

Marginal Product

Represents the additional output that can be produced by adding one more unit of a specific input, keeping all other inputs constant.

Isoquant

A curve that represents all the combinations of inputs that produce the same level of output in the production of goods.

Output

The total amount of goods or services produced by a company, industry, or economy.

Average Educational Level

A metric that represents the average amount of formal schooling completed by a population or specific group of people.