You take your answer to question 4 to your parent and say, “Hey, why didn’t you think ahead and buy me this coat the year I was born??? Look at all the money we could have saved!” Aside from the fact that your parent had no way of knowing you’d want a North Face almost two decades later, your parent disagrees with your logic and says there wouldn’t have been any savings by buying the coat in your birth year. Why is your parent making this claim?

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer