Business, 14.02.2020 04:29 alex12354

General Chemical Company (GCC) manufactures two products as part of a joint process: A1 and B1. Joint costs up to the split-off point total $22,000. The joint costs are allocated to A1 and B1 in proportion to their relative sales values. At the split-off point, product A1 can be sold for $42,000, whereas product B1 can be sold for $63,000. Product A1 can be processed further to make product A2, at an incremental cost of $38,000. A2 can be sold for $85,000. Product B1 can be processed further to make product B2, at an incremental cost of $48,000. B2 can be sold for $95,000.

Joint costs allocated to product A1 total:
a. $8,800.
b. $13,200.
c. $11,000.
d. $22,000.

Joint costs allocated to product B1 total:
a. $8,800.
b. $13,200.
c. $11,000.
d. $22,000.

The net change in operating income resulting from a decision to manufacture product A2 is:
a. $43,000 (increase).
b. $5,000 (decrease).
c. $5,000 (increase).
d. $38,000 (increase).

The net change in operating income resulting from a decision to manufacture product B2 is:
a. $16,000 (increase).
b. $16,000 (decrease).
c. $48,000 (decrease).
d. $32,000 (increase).

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Answer from: 250878

1- a. $8,800

2- b. $13,200

3- c. $5,000 (increase)

4- b. $16,000 (decrease)

Explanation:

1- The joint cost allocated to product A1 is $8,800.

Total sales value of A1 + B1 = $42,000 + $63,000 = $105,000.

The joint cost allocated to product A1 is calculated from formula ;

Joint cost till split off point * (Sales value of A1 / Total sales value of A1 + B1 )

$22,000 x ($42,000 / $105,000)

= $8,800.

2- The joint cost allocated to product B1 is $13,200.

Total sales value of A1 + B1 = $42,000 + $63,000 = $105,000.

The joint cost allocated to product B1 is calculated from formula ;

Joint cost till split off point * (Sales value of B1 / Total sales value of A1 + B1 )

$22,000 x ($63,000 / $105,000)

= $13,200.

3- The net change in operating income resulting from a decision to manufacture product A2 is $5,000 increase.

This can be calculates as, A1 profit - A2 profit

Product A1 profit = Sales value - Cost allocated

Product A1 profit = $42,000 - $8,800

Product A1 profit = $33,200.

Product A2 profit = Sales value - Cost allocated - incremental cost

Product A2 profit = $85,000 - $8,800 - $38,000

Product A2 profit = $38,200.

Net change in operating income = $5,000 ($38,200 - $33,200)

4- The net change in operating income resulting from a decision to manufacture product B2 is $16,000 decrease.

This can be calculates as, B1 Profit - B2 profit

Product B1 profit = Sales value - Cost allocated

Product B1 profit = $63,000 - $13,200

Product B1 profit = $49,800.

Product B2 profit = Sales value - Cost allocated - incremental cost

Product B2 profit = $95,000 - $13,200 - $48,000

Product B2 profit = $33,800.

Net change in operating income = $16,000 decrease ($49,800 - $33,800).

Answer from: Quest

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'

Answer from: Quest

the answer is: guns or butter

hope i

-lavira : )

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