Galveston Corporation has $201,000 of joint processing costs and is studying whether to process J and...
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Galveston Corporation has $201,000 of joint processing costs and is studying whether to process J and K beyond the split-off point. Information about J and K fol Product J Product K Tons produced 25,000 16,000 $64,500 $105,600 Separable variable processing costs beyond split-off Selling price per ton at split-off Selling price per ton after additional processing 16 53 20 57 If Galveston desires to maximize total company income, what should the firm do with regard to Products J and K? Product J Product K A. Sell at split-off Sell at split-off Process beyond split-off Sell at split-off B. Sell at split-off C. Process beyond split-off D. Process beyond split-off Process beyond split-off There is not enough information to judge. Howard Enterprises, which has three departments, recently reported the following results: A B Sales revenue $13,200 $ 52,800 44,000 Less: Operating costs 12,800 65,000 55,000 Operating income (loss) 400 $(12,200) $(11,000) The company incurred variable operating costs as well as $26,000 of fixed operating costs. The $26,000 amount was allocated to A, B, and C on the basis of sales revenue and is included in the cost figures noted above. Which department(s), if any, should be closed if none of the fixed operating costs can be avoided? Kingston Manufacturing has 35,000 labor hours available for producing X and Y. Consider the following information: Product X Product Y Required labor time per unit (hours) Maximum demand (units) Contribution margin per unit 4 5 6,000 $ 7,000 $ 5 $ 3.00 4 Contribution margin per labor hour $ 3.50 If Kingston follows proper managerial accounting practices, which of the following production schedules should the company set? Product X Product Y A. 0 units B. 375 units c. 6,000 units D. 6,000 units E. 6,000 units 7,000 units 7,000 units O units 2,200 units 7,000 units Galveston Corporation has $201,000 of joint processing costs and is studying whether to process J and K beyond the split-off point. Information about J and K fol Product J Product K Tons produced 25,000 16,000 $64,500 $105,600 Separable variable processing costs beyond split-off Selling price per ton at split-off Selling price per ton after additional processing 16 53 20 57 If Galveston desires to maximize total company income, what should the firm do with regard to Products J and K? Product J Product K A. Sell at split-off Sell at split-off Process beyond split-off Sell at split-off B. Sell at split-off C. Process beyond split-off D. Process beyond split-off Process beyond split-off There is not enough information to judge. Howard Enterprises, which has three departments, recently reported the following results: A B Sales revenue $13,200 $ 52,800 44,000 Less: Operating costs 12,800 65,000 55,000 Operating income (loss) 400 $(12,200) $(11,000) The company incurred variable operating costs as well as $26,000 of fixed operating costs. The $26,000 amount was allocated to A, B, and C on the basis of sales revenue and is included in the cost figures noted above. Which department(s), if any, should be closed if none of the fixed operating costs can be avoided? Kingston Manufacturing has 35,000 labor hours available for producing X and Y. Consider the following information: Product X Product Y Required labor time per unit (hours) Maximum demand (units) Contribution margin per unit 4 5 6,000 $ 7,000 $ 5 $ 3.00 4 Contribution margin per labor hour $ 3.50 If Kingston follows proper managerial accounting practices, which of the following production schedules should the company set? Product X Product Y A. 0 units B. 375 units c. 6,000 units D. 6,000 units E. 6,000 units 7,000 units 7,000 units O units 2,200 units 7,000 units
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Related Book For
Marketing Research
ISBN: 978-1118156636
11th edition
Authors: David A. Aaker, V. Kumar, Robert Leone, George S. Day
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