Question
Serene Dairy has four product lines: sour cream, ice cream, yogurt, and butter. The total cost of producing the milk base for the products is
Serene Dairy has four product lines: sour cream, ice cream, yogurt, and butter. The total cost of producing the milk base for the products is $45,000, which has been allocated based on the gallons of milk base used by each product. Results for July follow: Sour Cream Ice Cream Yogurt Butter Total Units sold 2,000 500 400 2,000 4,900 Revenue $10,000 $20,000 $10,000 $20,000 $60,000 Variable departmental costs 6,000 13,000 4,200 4,800 28,000 Fixed costs 5,000 2,000 3,000 7,000 17,000 Net income (loss) $(1,000) $5,000 $2,800 $8,200 $15,000 How much are total joint costs of the products?
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