90.2K

Verified Solution

Link Copied!

Synesthor Company harvests and processes almonds into three products: candied almonds, almond butter, and almond flour. The joint production cost for harvesting one ton of almonds is $$500.$ The selling price of the Synesthor$$s three products are as follows:

Candied almonds: $$1\mathrm{.}00$ per pound

Almond butter: $$5\mathrm{.}00$ per $40-$pound bag

Almond flour: $$14$ per ton

A new investor in Synesthor Company thinks that the company is losing money whenever it sells almond flour and has called for dropping this product from the product line. The controller of Synesthor Company has calculated that the extra processing cost $($beyond the joint production costs$)$ for almond flour is $$8$ per ton. Synesthor Company is currently selling $1,000$ tons of almond flour per year.

How much would Synesthor Company$$s net income change if it were to stop selling almond flour?

A$.$ It would increase by $$6,000$

B$.$ It would decrease by $$6,000$

C$.$ It would increase by $$14,000$

D$.$ It would decrease by $$14,000(39)$ Synesthor Company harvests and processes almonds into three products:

candied almonds, almond butter, and almond flour. The joint production cost

for havesting one ton of almonds $15$$$500.$ The selling price of the Synesthor's

three products are as follows:

Candied almonds: $$1\mathrm{.}00$ per pound

Almond butter: $$5,00$ per $40-$pourid trag

Almond flour: $514$ per ton

A new Investor In Symesthor Company thinks that the company Is losing money

whenever it sells almond flour and has called for dropping this product from

the product line. The contraller of synesthor Company has calculated that the

per ton. Symesthor Company is currently selling $1,000$ tons of almond four per

year.

How much would Synesthor Company's net Income change if It were to stop

selling almond flour?

It would increase by $$6,000$

It would decrease by $$6,000$

It would increase by $$14,000$

If would drencese ty $$14,000$

Answer & Explanation Solved by verified expert

See Answer