A chemical company spent $530,000 to produce 152,000 gallons of a chemical that can be sold for $4.80 per gallon. This chemical can be further processed into a weed killer that can be sold for $8.20 per gallon. It will cost $270,000 to proces the chemical into the weed killer. Which of the following is true? O A. If the company decides to process further, it will decrease operating income by $1,246,400. O B. If the company decides to process further, it will increase operating income by $246,800. Oc. To maximize operating income, the company should continue to sell the chemical as is. O D. If the company decides to process further, it will increase operating income by $446,400.

A chemical company spent $530,000 to produce 152,000 gallons of a chemical that can be sold for $4.80 per gallon. This chemical can be further processed into a weed killer that can be sold for $8.20 per gallon. It will cost $270,000 to proces the chemical into the weed killer. Which of the following is true? O A. If the company decides to process further, it will decrease operating income by $1,246,400. O B. If the company decides to process further, it will increase operating income by $246,800. Oc. To maximize operating income, the company should continue to sell the chemical as is. O D. If the company decides to process further, it will increase operating income by $446,400.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Joint processing costs up to the split-off point total $75,000 per quarter. The company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price 5 per pound Quarterly Output 10,000 pounds A $ B $ 7 per pound 22,000 pounds C $ 11 per gallon 5,000 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Product Processing Costs Selling Price A $ 53,000 $ 8 per pound B $ 38,000 $ 13 per pound с $ 18,000 $ 20 per gallon Which products should be processed further?
what are the solutions for questions 4 & 5?
whats happening with question 11 and 12? answer please
question 43 choose the correct answer from the choices
Could you please answer question 4 and 5?
WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows: A) B) Product X yes yes no no Units produced Per unit sales value at split-off Added processing costs per unit Per unit sales value if processed further The cost of the joint raw material input is $90,000. Which of the products should be processed beyond the split-off point? Product Y yes no yes yes Product X 2,700 $ 25.00 $ 2.00 $31.00 Product Z no yes no yes Product Y 3,200 $ 28.00 $ 4.00 $31.00 Product Z 4,200 $ 27.00 $4.00 $36.00
hrl.3 answer must be in proper format or i will give down vote
What's the final question's answer?
why did you not answer b?