00:01:52The net advantage (disadvantage) of processing Sweet Meats further is:Multiple Choicea $25,000 advantage to process further.a $25,000 disadvantage to process further.a $282,143 disadvantage to process further.a $32,143 advantage to process further. 6Delite Confectionary Company produces various types of candies. Several candies could be sold at the split-off point or processed further and sold in adifferent form after further processing. The candies are produced in a joint processing operation with $500,000 of joint processing costs monthly, whichare allocated based on pounds produced. Information concerning this process for a recent month appears below:-- ૦૦૧Price perpound atsplit-off$8$10$5Further Price afterNumber ofpounds50,000processingcosts$ 75,000Chocolate Delight100,000$ 30,000Minty Wonders25,000$ 20,000The net advantage (disadvantage) of processing Sweet Meats further is:Candy typeSweet Meatsprocessingfurther$ 10.00$10.50$5.50

Differential analysis is a management accounting technique in which we assess only the changes in…

Answered: The net advantage (disadvantage) of…

The net advantage (disadvantage) of processing Sweet Meats further is Multiple Choice a $25,000 advantage to process further.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2CE

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Question

00:01:52
The net advantage (disadvantage) of processing Sweet Meats further is:
Multiple Choice
a $25,000 advantage to process further.
a $25,000 disadvantage to process further.
a $282,143 disadvantage to process further.
a $32,143 advantage to process further.

6
Delite Confectionary Company produces various types of candies. Several candies could be sold at the split-off point or processed further and sold in a
different form after further processing. The candies are produced in a joint processing operation with $500,000 of joint processing costs monthly, which
are allocated based on pounds produced. Information concerning this process for a recent month appears below:
-- ૦૦૧
Price per
pound at
split-off
$8
$10
$5
Further Price after
Number of
pounds
50,000
processing
costs
$ 75,000
Chocolate Delight
100,000
$ 30,000
Minty Wonders
25,000
$ 20,000
The net advantage (disadvantage) of processing Sweet Meats further is:
Candy type
Sweet Meats
processing
further
$ 10.00
$10.50
$5.50

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Accounting Delite Confectionary Company produces various types of candies. Several candies could be sold at the split-off point or processed further and sold in a different form after further processing. The candies are produced in a joint processing operation with $590,000 of joint processing costs monthly, which are allocated based on pounds produced. Information concerning this process for a recent month appears below: Candy type Sweet Meats Chocolate Delight Minty Wonders Number of pounds 59,000 109,000 34,000 Price per pound at split-off $8 $10 $5 If Chocolate Delight is processed further, the gross profit margin that will appear in a product line income statement for Chocolate Delight would be: Note: Do not round intermediate calculations. Multiple Choice $1,127,300. $808,934. $697,974. $619,000. Further processing costs $ 84,000 $ 39,000 $ 29,000 Price after processing further $ 10.00 $ 10.70 $ 5.50
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