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Author Question: A joint production process at Sunnybrook Farms results in two products, strawberry syrup and ... (Read 58 times)

clippers!

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on: Jan 4, 2020
A joint production process at Sunnybrook Farms results in two products, strawberry syrup and strawberry jam. Strawberry syrup can be further processed into strawberry juice, and strawberry jam can be further processed into specialty jams. The following cost and activity data relate to these two products:

​Strawberry syrupStrawberry jam
Joint costs allocated $8,000 $14,000
​​​
Number of units produced from joint process2,000 2,000
​​​
Selling price at split-off point $2.50 $1.75
Selling price after processing further $5.00 $2.00
​​​
Cost of processing further $3,000 $2,000

If strawberry syrup is processed further into the specialty strawberry juice, what would be the overall effect on operating income assuming the same number of units will be produced?
◦ $5,000 net decrease in operating income
◦ $2,000 net decrease in operating income
◦ $2,000 net increase in operating income
◦ $5,000 net increase in operating income
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Marked as best answer by clippers! on Jan 4, 2020

ladyjames123

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Reply #1 on: Jan 4, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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clippers!

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Reply 2 on: Jan 4, 2020
Gracias!

bblaney

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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