25 May Question 116. Assume that sufficient time is available on the cons
Question
116. Assume that sufficient time is available on the constrained machine to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of this constrained resource?
A) $15.60 per minute
B) $13.10 per minute
C) $104.52 per unit
D) $27.36 per unit
117. If product Y is processed further, rather than being sold at the split-off point, the impact on monthly operating income should be:
A) $137,000 decrease
B) $245,000 increase
C) $63,000 increase
D) $244,000 increase
118. What would the unit selling price of product Y need to be at the split-off point in order for Anthony to be economically indifferent between selling Y at split-off or processing Y further before sale?
A) $3.80
B) $3.50
C) $3.20
D) $2.90
119. What is the net monetary advantage (disadvantage) of processing Product X beyond the split-off point?
A) $22,000
B) $8,000
C) $28,000
D) $2,000
120. What is the net monetary advantage (disadvantage) of processing Product Y beyond the split-off point?
A) $30,600
B) $9,600
C) $39,600
D) $600
121. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point?
A) $45,500
B) $14,000
C) $22,000
D) $37,500
122. How much profit (loss) does the company make by processing one batch of sugar cane into the end products industrial fiber and molasses?
A) ($4)
B) ($114)
C) $18
D) $14
123. How much profit (loss) does the company make by processing the intermediate product cane juice into molasses rather than selling it as is?
A) ($74)
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