Joint cost the sun-kissed company manufactures two skin-care lotions, soft skin and silken skin, out of a joint process. the joint (common) costs incurred are $430,000 for a standard production run that generates 195,000 gallons of soft skin and 120,000 gallons of silken skin. additional processing costs beyond the split-off point are $1.40 per gallon for soft skin and $0.90 per gallon for silken skin. soft skin sells for $2.40 per gallon while silken skin sells for $3.9 per gallon.

Principals are an administration career

Aprimary advantage of organizing economic activity within firms is thea. ability to coordinate highly complex tasks to allow for specialized division of labor. b. low administrative costs because of reduced bureaucracy. c. eradication of the principal-agent problem. d. high-powered incentive to work as salaried employees for an existing firm.

Asmall town wants to build some new recreational facilities. the proposed facilities include a swimming pool, recreation center, basketball court and baseball field. the town council wants to provide the facilities which will be used by the most people, but they face budget and land limitations. the town has $400,000 and 14 acres of land. the pool requires locker facilities which would be in the recreation center, so if the swimming pool is built the recreation center must also be built. also, the council has only enough flat land to build the basketball court or the baseball field. the daily usage and cost of the facilities (in $1,000) are shown below. which facilities should they build? facilityusagecost ($1,000)landswimming pool4001002recreation center5002003basketball court3001504baseball field2001005