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