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Dimas [21]
3 years ago
9

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the

split-off point total $335,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows:
Product Selling Price Quarterly Output
A $17.00 per pound 12,400 pounds
B $11.00 per pound 19,400 pounds
C $23.00 per gallon 3,600 gallons

Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below:

Product Additional Processing Costs Selling Price
A $63,720 $21.80 per pound
B $91,120 $16.80 per pound
C $37,360 $30.80 per gallon

Required:
a. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point?
b. Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which product or products should be processed further?
c. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point?
Business
1 answer:
g100num [7]3 years ago
8 0
Have no clue sorry that is not the answer
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deposit money

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Do you think a luxury brand can ever be called good value? Explain your answer
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I do believe luxurious brands are very picky with there titles
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TCBW last year had an average collection period (days sales outstanding) of 33 days based on accounts receivable of $350,000. Al
sergeinik [125]

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$296,969.70

Explanation:

Days of sales outstanding = number of days in a period / receivables turnover

Receivables turnover = revenue / average receivables

33 = 365 / receivables turnover

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with the new policy and same revenue :

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7 0
3 years ago
A firm that decides to emphasize those goods with the highest contribution margin per unit may have made an incorrect decision w
solmaris [256]

Answer:

Has capacity constraints in the form of limited resources

Explanation:

When the company has capacity constraints in the form of limited resources they should prioritize those goods with highest <em>contribution margin per unit of the limiting factor</em> instead of goods with the <em>highest contribution margin per unit</em>. This ensures that resources are distributed first to where they are more profitable.

Therefore, A firm that decides to emphasize those goods with the highest contribution margin per unit may have made an incorrect decision when the company has capacity constraints in the form of limited resources.

4 0
3 years ago
Consider the market for labor depicted by the demand and supply curves that follow. Use the calculator to help you answer the fo
vekshin1

Answer:

Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $12.50.

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$12.50               375,000                           625,000

This will result in a surplus of labor (625,000 higher than 375,000)

Which of the following statements are true?

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  • In the absence of price controls, a surplus puts downward pressure on wages until they fall to the equilibrium. Since a labor surplus exists, the price of labor should start to decrease in order to match the equilibrium price.
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3 years ago
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