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1 Assume a company has three products-A, B, and Cthat emerge from a joint process. The selling prices and outputs for each product at the
1 Assume a company has three products-A, B, and Cthat emerge from a joint process. The selling prices and outputs for each product at the split-off point are as follows: Product A Selling Price $33 per pound $29 per pound $24 per pound Output 14,000 pounds 18,000 pounds 19,000 pounds B 01:58:05 eBook Each product can be processed further beyond the split-off point. The additional processing costs for each product and their respective selling prices after further processing are as follows: Product A Additional Processing Costs $65,000 $72,000 $88,000 Selling Price $37 per pound $34 per pound $30 per pound B What is financial advantage (disadvantage) of further processing Product C? C 7 Assume a company has three products-A, B, and Cthat emerge from a joint process. The selling prices and outputs for each product at the split-off point are as follows: Product A B Selling Price $33 per pound $29 per pound $24 per pound Output 14,000 pounds 18,000 pounds 19,000 pounds 01:53:41 eBook Each product can be processed further beyond the split-off point. The additional processing costs for each product and their respective selling prices after further processing are as follows: Additional Product Processing Costs A $65,000 B $50,000 $70,000 Selling Price $37 per pound $34 per pound $30 per pound What is financial advantage (disadvantage) of further processing Product A? Multiple Choice 3 Assume that a company uses the absorption costing approach to cost-plus pricing. It is considering the introduction of a new product that it hopes to produce and sell at a volume of 10,000 units per year. To determine a selling price, the company has gathered the following information: 7:57 Direct materials per unit Direct labor unit Variable manufacturing overhead per unit Total fixed manufacturing overhead Markup percentage on absorption cost $11 $10 $2 $90,000 35%
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