Question
23) Product XY is one of the joint products in a joint manufacturing process. Management is studying whether to sell XY at the split-off point
23) Product XY is one of the joint products in a joint manufacturing process. Management is studying whether to sell XY at the split-off point or to process XY further into Z. The following data have been gathered: (1): Selling price of XY. (2): Variable cost of processing XY into Z product. (3): The avoidable fixed costs of processing XY into Z. (4): The selling price of Z. (5): The joint cost of the process from which XY is produced. Which of the above items are relevant in a decision of whether to sell the XY as is? Or process it further into Z?
a.
1, 2, 4
b.
1, 2, 3, 4
c.
2, 3, 5.
d.
1, 2, 3, 5
10)
The following information relates to the break-even point at Piazza Corporation: Sales Revenue (Sales Revenue ($ 120,000) and Total Fixed Cost ($ 30,000). If Piazza wants to generate net operating income of $12,000, what will its sales dollars have to be?
a.
$176,000
b.
$168,000
c.
$132,000
d.
$136,000
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