Question
Waterway Industries has four product lines: sour cream, ice cream, yogurt, and butter. The total cost of producing the milk base for the products is
Waterway Industries has four product lines: sour cream, ice cream, yogurt, and butter. The total cost of producing the milk base for the products is $43000, 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 $9520 $19040 $9520 $19040 $57120 Variable departmental costs 5460 11960 3900 4420 25740 Fixed costs 5000 2000 3000 7000 17000 Net income (loss) $ (940) $ 5080 $ 2620 $ 7620 $14380 How much are total joint costs of the products? $42740 $14380 $17000 $25740
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