Figure 6-5 Eden Company Manufactures Two Products, Brights and Dulls, from a from a Joint

Multiple Choice

Figure 6-5
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 6-5. 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