High quality h2o has developed a water purification device that is very different and more innovative when compared to any product currently on the market. although consumer response was positive to the idea of the new product, the company wants to find out more before committing to full-scale production. the next step high quality h2o's marketing department is likely to take is to:
a) locate a low-cost production site.
b) seek a joint venture with a larger company.
c) test market the product with potential users.
d) develop an advertising campaign to convince customers of the value of the new system.

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