Figure 7-7 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.
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Refer to Figure 7-7.What is the gross profit for Brights assuming the physical units method is used?
A) $62,500
B) $12,500
C) $47,500
D) $37,500
Correct Answer:
Verified
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