What is the incremental benefit to the company

Assignment Help Managerial Accounting
Reference no: EM13178295

Good Earth Products produces orange juice and candied orange peels. A 1,000 pound batch of oranges, costing $500, is transformed using labor of $50 into 100 pounds of orange peels and 300 pints of juice. The company has determined that the sales value of 100 pounds of peels at the split-off point is $350, and the value of a pint of juice (not pasteurized or bottled) is $0.040.  Beyond the split-off point, the cost of the sugar-coating and packaging the 100 pounds of peels is $60. The cost of pasteurizing and packaging the 300 pints of juice is $250.  A 100 pound box of candied peels is sold to commercial baking companies for $600.  Each pint of juice is sold for $1.75.

Required:

a.) Allocate joint costs using the relative sales values at the split-off point, and calculate the profit per 100 pound box of sugar-coated peels and the profit per pint of juice.  Round to the nearest dollar.

b.) What is the incremental benefit (cost) to the company of sugar-coating the peels rather than selling them in their condition at the split-off point?

c.) What is the incremental benefit (cost) to the company of pasteurizing and packaging a pint of juice rather than selling the juice at the split-off point?

Reference no: EM13178295

Question regarding the cvp ananlysis

Suppose a fixed cost of $900, a variable cost of $4.50, and selling price of $5.50. Find out the break even point? How many units should be sold to make a profit of $500.? H

Bond discount or premium

What proceeds did ClassCo get from sale of these Bonds? B] Show amortization schedule [table] for Bond Discount or Premium C] What was the ClassCo JE at sale of bonds [assume

Activity-based costing and management

Mattresses-A-Million produces Pillow-Top mattresses. They have been using a volume-based costing system to allocate overhead based on direct labor-hours. The Pillow-Top requ

Ethical considerations

The assignment must be completed individually and submitted before the due date to avoid any late penalties. Please make sure you follow the guidelines noted in your subject

What was the amount of payments to suppliers of inventory

A company's inventory account increased $26,500 and its accounts payable account decreased $18,250 during the year. The accounts payable relates only to the acquisition of inv

Demand for management accounting career options

Could someone give me their opinions on how to boost the demand for more management accounting career options on college grounds?

Perth corporation has two operating divisions

Perth Corporation has two operating divisions, a casino and a hotel. The two divisions meet the requirements for segment disclosures. Before transactions between the two divis

Manufacturing cost schedule and income statement

Manufacturing Cost Schedule and Income Statement - prepare a Schedule of Cost of Goods Manufactured, Schedule of Cost of Goods Sold, and an income statement for the Jupiter M

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd