Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Good Earth Products produce orange juice and candied orange peels. A 1,000 pound batch of oranges Costing $450 is transformed used labor $50 into 100 pounds of orange peels and 300 pints of juice. The company has determined that the sales value of 100 pounds of peels at the split off point is $350, and the sugar coating and packaging the 100 pounds of peels is $60. The cost of pasteurizing and packaging the 300 pints of juice is $200. A 100 pound box of candied peels is sold to commercial banking companies for $600 . Each pint of Juice is sold for $1.50.

Required:

A) Allocate joint costs using the relative sales values at the split off point and find out the profit per 100 pound box of sugar coated peels and the profit per pint of juice.

B) What is the incremental benefit (Cost) to the company of sugar coating the peels rather than selling them in their condition at the slit off point?

C) What is the incremental benefits (costs) to the company of pasteurizing and packaging a pint of juice rather than selling the juice at the split-off point?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M944889

Have any Question? 


Related Questions in Basic Finance

Regarding anovaexplain the difference between the

Regarding ANOVA: Explain the difference between the "Between-Treatments Estimate of Variance and the Within-Treatments Estimate of Variance. Why do we need two estimates? Wouldn't one estimate suffice?

Excel assignment you are going to purchase a new house

Excel Assignment You are going to purchase a new house valued at $250,000 by making the down payment of 20% and borrowing the rest as a 30-year fixed rate mortgage of 5.25%. Solve the problem by creating an Excel spreads ...

1 determine the utilization and the efficiency for each of

1. Determine the utilization and the efficiency for each of these situations: a. A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 20 loans per day and an ef ...

Dq cash flow and capital budgetingwhat countryies do you

DQ Cash Flow and Capital Budgeting What country(ies) do you think is(are) presently attractive for U.S. corporations seeking foreign direct investment opportunities? Take into account any geopolitical/economic/currency r ...

Personal finance discussionretirement and estate

Personal Finance Discussion Retirement and Estate Planning When should you start to think about retirement and estate planning? When should you start taking action? Why? Have you already started taking steps toward retir ...

In groups of 3-4 students should choose firstly an industry

In groups of 3-4, students should choose firstly an industry and secondly two (2) ASX listed companies in this same industry upon which to undertake a fundamental analysis. Fundamental Analysis seeks to identify factors ...

At the end of 2011 home depots total capitalization

At the end of 2011 Home Depot's total capitalization amounted to $28,992 million. In 2012 debt investors received interest income of $635 million. Net income to shareholders was $4,526 million. (Assume a tax rate of 35%. ...

Problema manager checked production records and found that

Problem A manager checked production records and found that a worker produced 195 units while working 50 hours. In the previous week, the same worker produced 144 units while working 40 hours. a. Compute Current period p ...

Assume that you are interested to evaluate the stock of

Assume that you are interested to evaluate the stock of Woolworths Limited. Go to Morningstar DatAnalysis Premium (http://datanalysis.morningstar.com.au.dbgw.lis.curtin.edu.au/af/dathome?). (a) List three comparable firm ...

Banks find it necessary to accommodate their clients needs

Banks find it necessary to accommodate their clients needs to buy or sell FX forward, in many instances for hedging purposes. How can the bank eliminate the currency exposure it has created for itself by accommodating a ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate