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8090 [49]
3 years ago
7

Sheela Dairy Corporation buys unprocessed cows' milk from local farmers. At the dairy, this unprocessed milk is broken down into

cream and low-fat milk. The cream can be sold at this point or can be further processed into butter. Which of the following would be relevant in the decision to further process the cream into butter?Question 3 options:a. the amount paid to the farmers to purchase the unprocessed milk.b. the cost of breaking down the unprocessed milk into cream and low-fat milk.c. the portion of corporate fixed expenses that are currently being allocated to cream.d. none of these
Business
1 answer:
Dafna11 [192]3 years ago
8 0

Answer:

The answer is D) None of these statement is relevant in the decision to further process the cream into butter.

Explanation:

option A)  the amount paid to the farmers to purchase the unprocessed milk: this information is not relevant to further develop the cream and low fat milk to butter. It was already considered before this stage of production.

Option B) the cost of breaking down the unprocessed milk into cream and low-fat milk: this cost was already accounted for since the processing into cream and low fat milk is completed.

Option C) the portion of corporate fixed expenses that are currently being allocated to cream: This information is not going to help in the decision making for further processing.

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Answer:

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Exercise 23-8 Sell or process further LO A1 Cobe Company has already manufactured 15,000 units of Product A at a cost of $30 per
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Answer:

Yes

Explanation:

In this question, we have to compare the cost so that the net income or net loss would be calculated.

                                         Sales              Process Further Cost

Sales                                $450,000       $1,275,100

Less: Processing cost                            $210,000

Net income                    $450,000        $1,065,100

where,

Sales of further processing cost would be

= 5,800 units × $107 + 11,900 units × $55

= $620,600 + $654,500

= $1,275,100

Since, net income is increased by $615,100. So, It would be process further

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