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1 Which of the following would beleast relevant in deciding whether to further process a joint product past the split-off point? b c d a
1 Which of the following would beleast relevant in deciding whether to further process a joint product past the split-off point? b c d a Incremental revenue eamed from additional processing. Incremental costs incurred as a result of additional processing Joint costs allocated to the joint product at the split-off point. Customer demand for the product that emerges from additional processing 2 Johnson produces 7,000 skateboards eachmonth, which it sells for $60 each. Variable costs are $25 per unit, and fixed costs are $95,000 per month. A Canadian company has offered to buy an additional 1,000 skateboards for $30 per unit. Assuming that normal sales volume and fixed costs remain unchanged, filling this special order will cause Johnson's operating income to a Decrease by $30,000 b Decrease by $6,250 c Decrease by $5,000 d Increase by $5,000
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