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Delite Confectionary Company Produces Various Types of Candies -
If Chocolate Delight Is Processed Further, the Gross Profit

Question 84

Multiple Choice

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:
FurtherPrice after Number of Price per pound at processing processing  Candy type  pounds  split-off  costs  further  Sweet Meats 50,000$8$75,000$10.00 Chocolate 100,000$10$30,000$10.50 Delight  Minty Wonders 25,000$5$20,000$5.50\begin{array}{lr}&&&\text {Further}&\text {Price after}\\&\text { Number of }&\text {Price per pound at }&\text {processing }&\text {processing }\\\text { Candy type } &\text { pounds }&\text { split-off } &\text { costs } &\text { further }\\\text { Sweet Meats } & 50,000&\$8&\$75,000&\$10.00 \\\text { Chocolate } & 100,000&\$10&\$30,000&\$10.50 \\\text { Delight } & \\\text { Minty Wonders } & 25,000&\$5&\$20,000&\$5.50\end{array}

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If Chocolate Delight is processed further, the gross profit margin that will appear in a product line income statement for Chocolate Delight (rounded to the nearest whole dollar) would be:


A) $734,286.
B) $520,000.
C) $1,020,000.
D) $632,596.

Correct Answer:

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