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Sheridan Company has four product lines: sour cream, ice cream, yogurt, and butter. The total cost of producing the milk base for the products is
Sheridan Company has four product lines: sour cream, ice cream, yogurt, and butter. The total cost of producing the milk base for the products is $36000, 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 | 2000 | 500 | 400 | 2000 | 4900 |
Revenue | $8330 | $16660 | $8330 | $16660 | $49980 |
Variable departmental costs | 3990 | 8740 | 2850 | 3230 | 18810 |
Fixed costs | 5000 | 2000 | 3000 | 7000 | 17000 |
Net income (loss) | $ (660) | $ 5920 | $ 2480 | $ 6430 | $14170 |
How much are total joint costs of the products?
a)$14170
b)$35810
c)$18810
d) $17000
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