When performing the managerial task of planning, managers organize people into departments according to the kinds of job-specific tasks they perform. encourage all employees to perform at a high level to help the organization achieve its vision and goals. establish alliances between different organizations to share resources and produce new goods and services. decide which goals the organization will pursue and what strategies will achieve those goals. use power, personality, and communication skills to coordinate the activities of people and groups.

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer