Roman is the chief executive officer of salty snax corporation. roman’s responsibilities include decisions on product development, marketing, and other significant business directions. roman is subject to the approval and oversight of salty snack board of directors. teri is a salty snax manager whose duties include the firm’s day-to-day hiring, firing, purchasing, and selling. umberto is a salty snax salesperson, whose daily activities are controlled by teri. velma writes sales manuals and promotional materials for salty snacks products according to roman’s instructions and subject to salty snacks control, but has no dealings with the company’s customers or suppliers. warren writes copy on a contract-per-project basis and is not otherwise subject to salty snacks control. who is a principal

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