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Bonita Dairy has four product lines: sour cream, ice cream, yogurt, and butter. The total costs of producing the milk base for the products is
Bonita Dairy has four product lines: sour cream, ice cream, yogurt, and butter. The total costs of producing the milk base for the products is $53500 which has been allocated based on litres of milk base used by each product. Results of July follow:
Sour Cream | Ice Cream | Yogurt | Butter | Total | |
Units sold | 1680 | 720 | 530 | 4700 | 7630 |
Revenue | $7100 | $14700 | $12500 | $25300 | $59600 |
Variable departmental costs | 3500 | 9800 | 6800 | 11900 | 32000 |
Fixed costs | 4700 | 900 | 1500 | 6400 | 13500 |
Net income (loss) | ($1100) | $4000 | $4200 | $7000 | $14100 |
How much are total joint costs of the products?
| $32000 |
| $13500 |
| $53500 |
| $14100 |
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