Question
18. Splitoff Company produces three products from the same batch of raw material. Processing results in 15,000 pounds of product A which can be sold
18. Splitoff Company produces three products from the same batch of raw material. Processing results in 15,000 pounds of product A which can be sold at a price of $10 per pound; or processed further to yield 10,000 pounds of product AA which can be sold at a price of $25 per pound. The additional process costs total $40,000. If the product A is processed further [making product AA], profits will a. Decrease $185,000 $185000 b. Increase c. Decrease $100,000 d. Increase $100,000 e. Decrease $ 60,000 f. Increase $ 60,000 g. None of the above. The answer is
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