Figure 6-5
Eden Company manufactures two products, Brights and Dulls, from a joint process. A production run costs £50,000 and results in 250 units of Brights and 1,000 units of Dulls. Both products must be processed past the split-off point, incurring separable costs for Brights of £60 per unit and £40 per unit for Dulls. The market price is £250 for Brights and £200 for Dulls.
-Refer to Figure 6-5. What is the gross profit for Dulls assuming the constant gross margin percentage method is used?
A) £120,000
B) £150,000
C) £37,500
D) £200,000
Correct Answer:
Verified
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