Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Two products are produced from a joint process AA and XX The result is 350 lbs of AA and 450 lbs of XX Before they

image text in transcribed
image text in transcribed
Two products are produced from a joint process AA and XX The result is 350 lbs of AA and 450 lbs of XX Before they can be sold they must be processed further at a cost of $280 for AA and $500 for XX The organization can only produce one batch per month The cost per batch is $160,000 The Demand varies with price charged as follows: Price/lb. Quantity Price/lb. AA 50 100 2000 1800 1600 1400 1400 1250 1100 950 150 200 1200 300 1000 800 400 450 The following analysis is prepared by the organization FC-160,000/800lbs $200/lb Cost of AA=280+200 -480 Cost of XX-500+200 =-700 Quantity AA REVAA COSTAA PROFIT Quantity Xx Revxx Cost XX Profit 480 100 76000 1320042 150 2000 1800 1600 1400 1200 1000 800 50 100 150 200 Se 168000 184000 180000 156000 112000 1400 1250 1100 950 800 700 700 700 700 700 35000 55000 60000 50000 25000 - 15000 -70000 - 140000 -225000 300 650 700 480 700 700 700 And as such the company sells 200 units af AA and 150 units of XX arks irks Tks How profitable will they be? How much should be sold - and how profitable would they be? How does the answer change if there is a disposal fee of $240/lb of unsold AA and $180/lb of unsold xx

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Effectiveness Meeting The IT Challenge

Authors: Kamil Omoteso

1st Edition

1409434680, 9781409434689

More Books

Students also viewed these Accounting questions

Question

Did you print a proof to view color and image consistency?

Answered: 1 week ago