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1 year ago

The ________ is the juncture in a joint production process when two or more products become separately identifiable.

1 answer:

6 0

The <u>split-off point</u> is the juncture in a joint production process when two or more products become separately identifiable.

<h3>What is the Split-off point?</h3>

In a split-off, a parent firm divests a business unit using particular structured conditions as corporate reform. There are various ways to structure a divestiture. Options include split-offs, spin-offs, and carve-outs, each having a unique architecture.

In the case of a split-off, the parent company gives shareholders the choice of either keeping their existing shares or exchanging them for shares of the firm that is splitting off. Unlike earlier divestitures, there is no pro rata distribution of the outstanding shares. To increase interest in the claims of the new firm, the parent company may decide to offer a premium for the exchange of shares in some split-offs.

Thus, It is a Split-off point that is being talked about here.

For more information on <u>the Split-off point,</u> refer to the given link:

brainly.com/question/15204844

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4 years ago

[The following information applies to the questions displayed below.]

Bumek [7]

Answer:

1.$4.58 per cases

2. Extra Fine $14.58

Family Style $13.58

3a. Extra Fine $4.42

Family Style $0.58

3b. What might the management conclude about the Family Style Salsa product line is that Family Style salsa are not yielding profit which may inturn make the company to stop the production of the product in a situation where the cost are not reduced

Explanation:

1. Computation for the overhead cost that is assigned to each case of Extra Fine Salsa and each case of Family Style Salsa using Plantwide overhead rate

Using this formula

Overhead cost=Total overhead cost/Total volume

Let plug in the formula

First step is to calculate the Total overhead cost

Total overhead cost = $132,300+ $347,000+$208,000

Total overhead cost =$687,300

Second step is to calculate the Total volume

Total volume= 34,000 +116,000

Total volume=150,000 cases

Now let calculate the Overhead cost

Overhead cost=$687,300/150,000 cases

Overhead cost=$4.58 per cases (rounded)

Therefore since we are making use of plantwide rate which means that same overhead cost of the amount of $4.58per cases will be assigned to each of the two case .

2. Calculation to determine the total cost per case for the two products

Extra Fine Family Style

Direct materials + Direct Labor $ 10.00 $ 9.00

Add Overhead $4.58 $4.58

Manufacturing cost per case $ 14.58 $ 13.58

Therefore the the total cost per case for the two products will be:

Extra Fine $14.58

Family Style $13.58

3-A Calculation to determine the gross profit per case for each product.

Extra Fine Family Style

Selling price per case $ 19.00 $ 13.00

Less Manufacturing cost per case $14.58 $13.58

Gross profit (loss) per case $ 4.42 $ (0.58 )

Therefore the gross profit per case for each product will be ;

Extra Fine $4.42

Family Style $0.58

3-b. What might the management conclude about the Family Style Salsa product line is that Family Style salsa are not yielding profit because they are not profitable which may inturn make the company to stop the production of the product In a situation where the cost are not reduced .

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