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Balley, Inc If Balley Produces and Sells the Best Mix, What Is

Question 30

Multiple Choice

Balley, Inc. produces three milk products (all are main products) from a joint process costing $200,000. Data from the current period's operation follow:  Units  Unit Sales Price  Separable  Total Revenue After  Produced at Split-Off  Costs  Further Processing  Regular 5,000$5$10,000$40,000 Fat-free 15,000716,000120,0002%30,00085,000250,000\begin{array}{lcccc}&\text { Units } & \text { Unit Sales Price } & \text { Separable } & \text { Total Revenue After }\\&\text { Produced} & \text { at Split-Off } & \text { Costs }& \text { Further Processing }\\\text { Regular } & 5,000 & \$ 5 & \$ 10,000 & \$ 40,000 \\\text { Fat-free } & 15,000 & 7 & 16,000 & 120,000 \\2 \% & 30,000 & 8 & 5,000 & 250,000\end{array}

If Balley produces and sells the best mix, what is the total gross margin?


A) $195,000
B) $210,000
C) $180,000
D) $164,000

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