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1. A company is in the process of developing its sales budget. The following information is available: Variable expenses per unit Total fixed expenses

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1. A company is in the process of developing its sales budget. The following information is available: Variable expenses per unit Total fixed expenses Desired net income Projected sales $4 $1,100 $4,600 1,500 units What per-unit sales price (rounded to the nearest cent) should be set to achieve the desired net income? a. $4.00 b. $4.73 c. $6.33 d. $7.80 2. A firm produces two joint products (A and B) from one unit of raw material, which costs $1,000. Product A can be sold for $700 and Product B can be sold for $500 at the split-off point. Alternatively, both A and/or B can be processed further and sold for $900 and $1,500, respectively. The additional processing costs are $100 for A and $750 for B. Should the firm process products A and B beyond the split-off point? a. Both A and B should be processed further. b. Only B should be processed further. c. Only A should be processed further. d. Neither product should be processed further.

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