Chapter 6.3, Problem 3AYU

Crestwood Industries mixes together sugarcane residue and ethanol. After joint manufacturing costs of $3,500 have been incurred, the mixture separates into two products, biomass fuel and industrial alcohol. At the split-off point, biomass fuel can be sold for $6,500, and the alcohol can be sold for $10,500. The biomass fuel can be further processed at a cost of $7,500 to make bio-bricks, which could be sold for $17,500. The alcohol can be further processed at a cost of $8,500 to make a disinfectant, which could be sold for $16,500.What is the net increase (decrease) in operating income from bio-bricks?

Net loss for the year?

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Financial Accounting

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Your company pays back $2 million on a loan it had received earlier from a bank. How does this transaction affect the accounting equation? a. Assets decrease by $2 million, liabilities are unchanged, and contributed capital decreases by $2 million. b. Assets are unchanged, and liabilities and shareholders' equity both increase by $2 million. c. Assets decrease by $2 million, liabilities decrease by $2 million, and shareholders' equity is unchanged. d. Assets are unchanged, liabilities increase by $2 million, and contributed capital decreases by $2 million.

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Crestwood Industries mixes together sugarcane residue and ethanol. After joint manufacturing costs of $3,500 have been incurred, the mixture separates into two products, biomass fuel and industrial alcohol. At the split-off point, biomass fuel can be sold for $6,500, and the alcohol can be sold for $10,500. The biomass fuel can be further processed at a cost of $7,500 to make bio-bricks, which could be sold for $17,500. The alcohol can be further processed at a cost of $8,500 to make a disinfectant, which could be sold for $16,500.What is the net increase (decrease) in operating income from bio-bricks?need answer