The Sweete Shoppe produces a variety of sweet treats. Several treats can be sold at split-off or further processed to produce a different type of treat. The following three treats are all produced in a joint processing operation at a cost of $63,000. The costs are allocated based on pounds produced. Information for these treats is as follows: If Processed Further Product Pounds (lb) Produced Price per lb. at Split-Off Final price per unit Further Processing Costs Berry Delight 63,000 $8.00 $10.00 $88,000 Chocolate Wonder 113,000 10.00 10.50 43,000 Caramel Chip 38,000 5.00 5.60 33,000 The net increase or decrease in profits of processing Berry Delight further is Question options: a) an increase of $38,000. b) an increase of $19,453. c) a decrease of $38,000. d) a decrease of $19,453.
The Sweete Shoppe produces a variety of sweet treats. Several treats can be sold at split-off or further processed to produce a different type of treat. The following three treats are all produced in a joint processing operation at a cost of $63,000. The costs are allocated based on pounds produced. Information for these treats is as follows: If Processed Further Product Pounds (lb) Produced Price per lb. at Split-Off Final price per unit Further Processing Costs Berry Delight 63,000 $8.00 $10.00 $88,000 Chocolate Wonder 113,000 10.00 10.50 43,000 Caramel Chip 38,000 5.00 5.60 33,000 The net increase or decrease in profits of processing Berry Delight further is Question options: a) an increase of $38,000. b) an increase of $19,453. c) a decrease of $38,000. d) a decrease of $19,453.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Sweete Shoppe produces a variety of sweet treats. Several treats can be sold at split-off or further processed to produce a different type of treat. The following three treats are all produced in a joint processing operation at a cost of $63,000. The costs are allocated based on pounds produced. Information for these treats is as follows:
| If Processed Further | ||||
| Product | Pounds (lb) Produced | Price per lb. at Split-Off | Final price per unit | Further |
| Berry Delight | 63,000 | $8.00 | $10.00 | $88,000 |
| Chocolate Wonder | 113,000 | 10.00 | 10.50 | 43,000 |
| Caramel Chip | 38,000 | 5.00 | 5.60 | 33,000 |
The net increase or decrease in profits of processing Berry Delight further is
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