Mateusz sells cameras from his shop on a main street in his city. He normally sells twenty cameras per month. He has been trying to increase the number of cameras he sells and as a result has improved his advertising, store signage, and utilization of social media to contact potential buyers in the most likely demographic group. Even with all of these efforts, sales have only improved by one camera per month. This month he decided that if he stocks his shelves with four times more cameras and sells them at the same price he is now offering them, he will sell four times more cameras. What is the fundamental flaw in his plan?

Solomon chemical company makes three products, b7, k6, and x9, which are joint products from the same materials. in a standard batch of 320,000 pounds of raw materials, the company generates 70,000 pounds of b7, 150,000 pounds of k6, and 100,000 pounds of x9. a standard batch costs $3,840,000 to produce. the sales prices per pound are $10, $14, and $20 for b7, k6, and x9, respectively. (a) allocate the joint product cost among the three final products using weight as the allocation base. (b) allocate the joint product cost among the three final products using market value as the allocation base. (c) allocate the joint product cost among the three final products using weight as the allocation base.