Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Atlanta Manufacturing Company produces products W, X, Y, and Z through a joint
process. The joint costs amount to $250,000.
Product
Units
Produced
Sales Value
at Split-Off
Additional Costs
of Processing
Sales Value
After Processing
W
750
$10,000
$2,500
$15,000
X
1,500
$30,000
$3,000
$35,000
Y
1,000
$20,000
$4,000
$25,000
Z
1,500
$40,000
$6,000
$45,000
If W is processed further, profits of W will:
1) Increase by $2,500
2) Increase by $12,500
3) Decrease by $23,000
4) Increase by $5,000
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Transcribed Image Text:Atlanta Manufacturing Company produces products W, X, Y, and Z through a joint process. The joint costs amount to $250,000. Product Units Produced Sales Value at Split-Off Additional Costs of Processing Sales Value After Processing W 750 $10,000 $2,500 $15,000 X 1,500 $30,000 $3,000 $35,000 Y 1,000 $20,000 $4,000 $25,000 Z 1,500 $40,000 $6,000 $45,000 If W is processed further, profits of W will: 1) Increase by $2,500 2) Increase by $12,500 3) Decrease by $23,000 4) Increase by $5,000
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