1. Product Blue 5 is one of six of the joint products in a joint manufacturing process at Jiffy Corp. Jiffy's management is considering whether to sell Blue 5 at the split-off point or to process it further into Aqua 7. The following information has been gathered:

I. Selling price of Blue 5 II. Variable cost of processing Blue 5 into Aqua 7. III. The avoidable fixed costs of processing Blue 5 into Aqua 7. IV. The selling price of Aqua 7. V. The joint cost of the process from which Blue 5 is produced.

Which of the items listed above are relevant in the decision of whether to sell the Blue 5 as is or to process it further into Aqua 7?

a.I, II, III, and IV

b.I, II, and IV

c.II, III, and V

d. I, II, III, and V

2. One of Newberry, Inc.'s employees was recently involved in a car accident with one of the company's delivery trucks. The company is either going to repair the damaged truck or sell it as is and buy a comparable used truck. Information related to this decision is provided as follows:

Initial cost of the damaged truck $ 30,000 Accumulated depreciation to date on truck $ 18,000 Salvage value of truck immediately before crash $ 9,000 Salvage value of truck immediately after crash $ 1,000 Cost to repair damaged truck $ 5,000 Cost of a comparable used truck $ 10,000

Based on the given data above, Newberry would be financially better off

a.$4,000 by repairing the damaged truck.

b.$1,000 by buying the comparable truck.

c.$2,000 by buying the comparable truck.

d. $2,000 by repairing the damaged truck.

3. Main Street Corporation makes three products that use a input called solvent X, which happens to be the current constrained resource. Information concerning those products appear below:

AB BC CD Selling price per unit $ 248.04 $ 230.66 $ 505.44 Variable cost per unit $ 190.71 $ 172.14 $ 388.80 Ounces of solvent X 3.90 3.80 8.10

In order of their current profitability, rank the products from most profitable to the least profitable. Said differently, rank the products in the order in which they should be emphasized.

a. CD, AB, BC

b. BC, AB, CD

c. AB, CD, BC

d. CD, BC, AB