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Luba_88 [7]
3 years ago
12

WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for t

he next month is as follows: Product X Product Y Product Z Units produced 2,400 2,900 3,900 Per unit sales value at split-off $ 21.00 $ 24.00 $ 24.00 Added processing costs per unit $ 3.00 $ 5.00 $ 5.00 Per unit sales value if processed further $ 25.00 $ 25.00 $ 30.00 The cost of the joint raw material input is $77,000. Which of the products should be processed beyond the split-off point? Product X Product Y Product Z A) yes yes no B) yes no yes C) no yes no D) no yes yes
Business
1 answer:
Savatey [412]3 years ago
7 0

Answer:

WP Corporation

Which of the products should be processed beyond the split-off point? Product X Product Y Product Z

B) yes no yes

Explanation:

a) Data and Calculations:

Budgeted data for the next month:

products                                                           X             Y              Z

Units produced                                              2,400      2,900       3,900

Per unit sales value at split-off                   $ 21.00   $ 24.00   $ 24.00

Added processing costs per unit                $ 3.00     $ 5.00     $ 5.00

Per unit sales value if processed further $ 25.00  $ 25.00    $ 30.00

Added profit after further processing        $ 1.00    ($4.00)      $ 1.00

Further processing of the products X, Y, and Z will yield further or added profit of $1.00 from products X and Z, but a loss of $4 from product Y.  Therefore, product Y should not be processed further, unless its cost structure is such that there is a more than $4 profit to be generated and its further processing is necessary for the other two to be sold, that is if the three products must be sold jointly.  In such a case, management could take further analysis to reduce the cost for consumers.

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Patrick and Amanda are team leaders in a small organization. Patrick does not supervise his team very closely, is always asking
Dominik [7]

Answer:

person-oriented; task- oriented

Explanation:

Patrick focusing on relationships, also mindful of what his team members think, concerned with and respects other people's ideas and feelings shows he is a person-oriented leader.

On the other hand, Amanda focusing on task accomplishment; directing work activities towards goals and ensuring all her team members are up and doing shows she is a task-oriented leader.

7 0
3 years ago
You are considering the purchase of an office building for $1.5 million today. Your expectations include the following: first-ye
ddd [48]

Answer:

$289000

Explanation:

Effective Gross Income (EGI): Effective Gross Income is calculated by deducting the Vacancy and collection (V&C) loss from Gross Potential Income (GPI).

First year gross potential income (PGI) is $340,000

Vacancy and collection (V&C) loss is 15% of gross potential income

Therefore, (V&C) allowance = [$340,000 15%]

= $51,000

Calculate Effective Gross Income (EGI) for the first year of operations:

Item

Amount

Potential gross income (PGI)

$340,000

Less: V&C allowance (at 15% of PGI)

($51,000)

Effective Gross Income ( EGI )

$289,000

Hence the EGI is $289,000

7 0
3 years ago
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: If $25,
GaryK [48]

Answer:

The missing part of the question is found below:

Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow:

                                Total       Hiking        Fashion

Sales revenue       $480,000 $340,000 $140,000

Variable expenses 355,000 235,000 120,000

Contribution margin 125,000 105,000 20,000

Fixed expenses         76,000 38,000 38,000

Operating income (loss) $49,000 $67,000 $(18,000)

Answer

By discontinuing fashion line of business operating income would increase by $5,000

Explanation:

The impact of eliminating Fashion line is evident in the revised Income statement below:

                                                                 Hiking

Sales revenue                                         $340,000

Variable expenses                                  ($235,000)

Contribution margin                                105,000

Fixed expenses($76,000-$25,000)     ($51,000)

Operating income                                    $54,000

By discontinuing the fashion line of business,the operating income would increase by $5,000 ($54,000-$49,000) from $49,000 when operating the two lines of business to $54,000 when fashion is closed up.

The most appropriate action is to concentrate on the hiking line which might mean that Boots plus has a competitive edge in the Hiking business sector.

4 0
3 years ago
A group of 2-year-old infants are selected for a special program because their iq scores are very low. five years later, most of
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3 years ago
Mark's home was damaged in a fire and no longer able to be occupied. Fortunately, the event was insured by Mark's property insur
juin [17]

Answer:

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5 0
3 years ago
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