ACCOUNT-Gavin West is a commercial fisherman, and he has
by ella | Aug 20, 2025 | Business
Gavin West is a commercial fisherman, and he has just returned from a trip off the coast of Maine. He has calculated the cost of his catch as follows:
| Wages of deckhands |
$30,700 |
| Gavin’s wage |
17,100 |
| Food, medical supplies, etc. |
7,000 |
| Depreciation of netting and other equipment |
5,500 |
| Depreciation of boat |
13,700 |
| Fuel |
17,600 |
| Total |
$91,600 |
Gavin’s nets yielded a catch of 15,400 pounds of salmon, 23,870 pounds of halibut, and 37,730 pounds of flounder. Salmon sells for $8 per pound, halibut for $6 per pound, and flounder for $4 per pound. |
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Allocate joint costs based on weight. With these costs, what is the profit associated with each type of fish?
| Profit |
| Salmon |
$104880 |
| Halibut |
$114824 |
| Flounder |
$106036 |
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Allocate joint costs based on relative sales values. With these costs, what is the profit associated with each type of fish? (Round relative sales value proportion percent to 3 decimal places eg.32.954% and final answers to 0 decimal place e.g. 125.)
| Profit |
| Salmon |
$ |
| Halibut |
$ |
| Flounder |
$ |
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Gavin is considering turning the flounder into fish paste. The incremental cost of this operation is $10,100. Each pound of flounder yields one-half pound of paste, and the paste sells for $8 per pound. Will Gavin be better off selling the flounder or turning it into paste?
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Net incremental benefitcost of converting the flounder into fish paste is ?????$. Gavin will be better off selling the flounderturning it into paste.
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