Question
Show all work Elizabeth Pharmaceutical produces several medicines. Each compound can be sold at the split-off point or processed further. The following results apply to
Show all work
Elizabeth Pharmaceutical produces several medicines. Each compound can be sold at the split-off point or processed further. The following results apply to March:
Product | Sales Value at Split-off Point | Costs of Additional Processing | Sales Value After Additional Processing |
Savior I | $19,000 | $ 5,300 | $26,000 |
Savior II | 23,500 | 10,500 | 33,000 |
Savior III | 16,000 | 9,500 | 25,000 |
Product | Incremental revenue | Incremental cost | Profit or loss from Additional processing | |
Savior I | _________ | $ 5,300 | _________ | |
Savior II | _________ | 10,500 | _________ | |
Savior III | __________ | 9,500 | __________ | |
After determining which products should be sold at the split-off point and which should be processed further, the TOTAL REVENUE provided by these three products would be
a. | $84,000. b.$58,500 c. $77,000 d. $65,500 |
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The minimum rate of return on an investment is also known as a
a. | hurdle rate. |
b. | payback rate. |
c. | net present value. |
d. | profit margin. |
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