Figure 7-7 Garden of Eden Company Manufactures Two Products, Brights and Dulls

Multiple Choice

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 Dulls assuming the constant gross margin percentage method is used?

A) $120,000
B) $150,000
C) $37,500
D) $200,000