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3 years ago

When is it profitable to continue processing a joint product after the split-off point?

Business

1 answer:

aev [14]3 years ago

6 0

Answer:

The answer is: A) It is profitable when the incremental revenue exceeds the incremental processing cost.

Explanation:

The split-off point is the point where joint products are manufactured separately as two or more distinct products. After the split-off point, each individual product's costs can be identified. Before the split-off point, both manufactured products shared the production costs.

So after the split-off point each individual product will continue to be processed as long as the incremental revenue is larger than the incremental cost. For example, processed milk will continue to be processed into cheese, butter, etc., as long as the incremental revenue exceeds the incremental costs, i.e. the high price of butter justifies the extra processing.

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An investment should be undertaken A) if the present value of the expected income stream associated with the investment is great

Alona [7]

Answer:

A) if the present value of the expected income stream associated with the investment is greater than the full cost of the investment project.

Explanation:

It is when the present value of the expected income stream associated with the investment is greater than the full cost of the investment project that the project is profitable. Most investments are undertaken with the aim of making profits.

The net present value can be used to determine if the present value of the expected income stream associated with the investment would be greater than the full cost of the investment project.

3 0

3 years ago

If the MPC = .80, all taxes are lump-sum taxes, and the equilibrium GDP is $40 billion below the full-employment GDP, the size o

Sav [38]

Answer:

recessionary gap = 8 billion

so correct option is c) $8 billion

Explanation:

given data

MPC = 0.80

GDP = $40 billion

to find out

the size of the recessionary gap

solution

we get here first Multiplier that is

Multiplier = $\frac{1}{1-MPC}$ ..................1

Multiplier = $\frac{1}{1-0.80}$

Multiplier = 5

so recessionary gap will be

recessionary gap = $\frac{GDP}{5}$ ................2

recessionary gap = $\frac{40}{5}$

recessionary gap = 8 billion

so correct option is c) $8 billion

5 0

3 years ago

15) One year ago, you purchased 400 shares of Romy’s Roses stock at a price of $24.15 a share. The stock pays an annual dividend

alukav5142 [94]

Answer:

= $2,748

Explanation:

Number of shares purchased = 400

Price per share (a year ago)= $24.15

Total price paid a year ago = 400*$24.15 = $9,660

Annual dividend per share = $1.82

Total dividend earned = 400 * $1.82 = $728

Price per share (today)= $29.20

Proceeds from sale of shares today = 400*$29.20 = $11,680

Next, find total dollar return;

Total dollar return = Total dividend earned + Proceeds from sale of shares today - Total price paid a year ago

= $728+ $11,680 - $9,660

= $2,748

4 0

3 years ago

What are the matters to be considered while studing market ? write in brief

ELEN [110]

Answer:

The purpose of researching a market is to figure out how you can best attract those who are likely to buy your company's products or services.

6 0

3 years ago

The marginal propensity to save is 0.2. equilibrium gdp will decrease by $50 billion if the aggregate expenditures schedule decr

s344n2d4d5 [400]

The marginal propensity to save is 0.2. equilibrium gdp will decrease by $50 billion if the aggregate expenditures schedule decreases by:$10 billion.

<h3>Aggregate expenditures schedule</h3>

Using this formula

Aggregate expenditures schedule=Marginal propensity to save×Equilibrium gdp

Where:

Marginal propensity to save=0.2

Equilibrium gdp=$50 billion

Let plug in the formula

Aggregate expenditures schedule=0.2×$50 billion

Aggregate expenditures schedule=$10 billion

Therefore the marginal propensity to save is 0.2. equilibrium gdp will decrease by $50 billion if the aggregate expenditures schedule decreases by:$10 billion.

Learn more about Aggregate expenditures schedule here:brainly.com/question/13117251

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3 0

2 years ago