Dodrill Company Makes Two Products from a Common Input

question 25

Multiple Choice

Dodrill Company makes two products from a common input. Joint processing costs up to the split-off point total $43,200 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below:
-What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point?

• A)$(4,200)
• B)$21,800
• C)$24,400
• D)$(1,600)

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Definitions:

mRNA

Messenger RNA, a type of RNA that carries genetic information from DNA to the ribosome, where it serves as a template for protein synthesis.

Ribosome

A cellular organelle composed of RNA and proteins, found throughout the cytoplasm in cells, which is involved in decoding the mRNA to produce proteins.

Nucleic Acid Bases

The parts of DNA and RNA molecules that carry genetic information, specifically adenine, thymine (in DNA), cytosine, guanine, and uracil (in RNA).

Three-Base Combinations

Sequences of three nucleotide bases in DNA or RNA, known as codons, which specify the addition of a specific amino acid to a growing polypeptide chain during protein synthesis.