By what criterial would management determine whether to further process the joint products? Select one: O a. If sales value of joint product at split-off point is lower that sales value after further process. O b. If the joint product net realizable value is lower than sales value at split-off point O c. If sales value of joint product at split-off point is higher is than sales value after further process. O d. If the incremental revenue of joint product is higher that the joint product incremental cost. Booths Industry produces two products from a common input. Data relating to the two products are given below: Product A Product B Sales value at split-off point...... $100,000 $110,000 Allocated joint product costs...... $45,000 90,000 Sales value after further processing...... $120,000 200,000 Cost of further processing........ $20,000 85,000 At present practice Booths Industry sold each joint product after further processing. If the joint product will be sold at split-off point, how much would be the difference in the company's overall profit? Select one: O a $5,000 difference higher than at present practice. O b. $110,000 difference less than at present practice. O c. $10,000 difference less than at present practice. O d. $5,000 difference less than at present practice. Booths Industry produces two products from a common input Data relating to the two products are given below: Sales value at split-off point.. Allocated joint product costs............... Sales value after further processing........ Cost of further processing. Product A $100,000 $45.000 $120.000 $20,000 Product B $120.000 90.000 200,000 85,000 At present practice Booths Industry sold each joint product after further processing of the joint product will be sold at split-off point how much would be the difference in the company's overall profit? Select one: O a $10,000 difference less than at present practice. O b. 55.000 difference higher than at present practice. O c. 55,000 difference less than at present practice. Od: $110.000 difference less than at present practice. Dee Company produce and sell three products-- A, B and C. The contribution margin per unit of each product is Product A $54, Product B $108, and Product C $60. All three products use same direct material and all have direct material cost per unit of $32, if direct material cost is $5 per pound, how much is Product A, Product B, and Product C's contribution margin per pound of direct material? Select one: O a. Product A $$6.75; Product B $13.50; and Product C $7.50 O b. Product A$ 6.75, Product B $13.50, and Product C $ 7.50 O c. Product A $1.6875; Product B $3.375; and Product C $1.875 O d. Product A $8.44; Product B $ 16.88; and Product C $9.38 tao Halley Company produces 2.000 parts each year that are used in one of its products. At this level of activity, variable production cost is $7.50 per unit and fixed production cost is $5 per unit. The part can be purchased from an outside supplier at $10 per unit. If the part is purchased from the outside supplier, two-third of the foxed production costs applied in the production of the parts can be eliminated. How much would be the total effect on the company's operating income if the parts were purchased? Select one: O a. 5 7,000 increase O b. 53.000 increase O c $1.000 decrease O d. 5 5.000 decrease Below is the cost of Idler Company of one of its products a sport fighting kite. Variable production costs.......... $5.00 Fixed production costs........ 2.35 Variable selling costs. 1.00 Fixed selling and administrative costs... 3.45 Total unit cost........ $11.80 There is ample idle capacity to accept a special order without any increase in total fixed costs of any kind. A 1,000 kites special order was received from local customer at a price of $9.00 each. The special order would involve lower variable selling costs of $0.20 per unit instead of $0.75 per unit. What effect would be in accepting the special order on the company's operating income? Select one: O a. $4,500 increase O b. $2,800 decrease O c. $3,800 increase O d. $3,950 increase In constraint resources, a company should always promote the product that has, Select one: O a. The highest contribution margin per unit. O b. The highest contribution margin per constraint resources. O c. The lowest manufacturing cost per constraint resources. Od. The highest selling price. Tao Peter Company is manufacturing 5,000 part that is used in one of its products. The company's accounts show the following costs for producing 5,000 parts internally Per Part Variable manufacturing cost $27 Traceable foed manufacturing overhead 4 Allocated foxed manufacturing overhead 3 $36 Total cost The traceable fixed manufacturing overhead costs consists of 80% depreciation of special equipment and 20% supervisor salaries. The special equipment has no resale value. The supervisory salaries could be avoided if production of the part were discontinued. An outside supplier has offered to sell the 5,000 parts to Peter Company at 530 each How much would be the increase or decrease in profit. If this offer is accepted? Select one O a Increase by $30,000 O b. Decrease in profit by 511,000 O c Increase in prot by $10,000 Od Decrease by $30.000 Pu M Company produces three products A, B, and C. You are provided with following particulars: Product A Product B Product C Selling price $100 $150 $120 Contribution margin ratio 3096 25% 20% Machine hours per unit 7.5 hours 12.5 hours 12 hours Demand for one month 4,000 units 4,000 units 1,000 units If the total machine hours available for production is 65,000 hours and total fixed cost is $180,000 per month how many units of each product should be produced and sold in order to get maximum profit, if it makes optimal use of the its available machines hours? Select one: O a. Product A 4,000 units and Product B 2,800 units. O b. Product A 2,000 units; Product B 4,000 units; and Product C 1,000 units. c. Product A2.000 units; Product B 4,000 units; and Product C 500 units. O d. Product A 2,000 units only