Use the information below to answer the following question$($s$)$:

Orange Paper Company processes wood pulp into two products. During February the joint costs of processing were $$156,000.$ Production and sales value information for the month were as follows:

$$Sales Value at

ProductKilograms Producedsplitoff PointSeparable Costs

Paper$180,000$$$30,000$$$232,000$

Cardboard$132,00020,000277,000$

Paper sells for $$2\mathrm{.}85$ a kilogram and cardboard sells for $$3\mathrm{.}90$ a kilogram.

There were no beginning inventories for April but ending inventories totalled $15,000$ kilograms for paper and $18,000$ kilograms for cardboard.

What will be the total incremental benefit or $($loss$)$ from all potential sales of processing the cardboard beyond the splitoff point?

Question $9$Answer

a$.$

$$217,800$

b$.$

$$257,800$

c$.$

$$237,800$

d$.$

$$311,000$

e$.$

$$277,000$