Pyramid Printing Company is a printer of magazines and retail inserts. In addition, there are two joint products (food wrapping and book covers) and one byproduct (shipping-box inserts) that originate from the trimmings of Pyramid's paper rolls in production. The food wrapping and book covers are the same size. The shipping-box inserts are sold to online retailers for shipping books. All joint products and byproducts are sold as sustainable alternatives to other recycling opportunities.

Pyramid's cost information by process follows:

Pyramid Printing Company Products	Pounds of production	Cost
Magazines	400,000	$1,400,000
Retail inserts	360,000	1,000,000
Food wrapping	100,000	1,200,000
Book covers	240,000	1,600,000
Shipping-box inserts (byproduct)	20,000	40,000

The shipping-box inserts are able to be sold for $800,000 to online retailers.

- Determine the cost of food wrapping and book covers if the sales method is used for shipping-box inserts.

- Determine the cost of food wrapping and book covers if the production method is used for shipping box inserts.

- Which method would you suggest is the best for Pyramid?

Answer rating: 100% (QA)

Solution Pyramid Products Pounds of Production Cost Cost per Pound Magazines 400000 1400... View the full answer