Question
1. Give three measures that are generally relevant in decision making. 2. Bozer Company produces three products from a joint process. The joint process has
1. Give three measures that are generally relevant in decision making.
2.
Bozer Company produces three products from a joint process. The joint process has total costs of $500,000 per month. All three products, A, B, C, are immediately saleable as they come out of the joint process. Alternatively, any of the products could continue on with additional processing and be sold as a more complete product. The following information is available:
Units Immediate Sales Price Later Sales Prices Unit cost of Further Processing
A 5,000 $15 $20 $6
B 17,500 $20 $25 $4
C 10,000 $25 $32 $3
Note whether each product should be sold immediately or sold after processing further.
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