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19 (2 points) Bugs Bunny grows carrots and processes them into two different types of carrot products: baby carrots and carrot cake. A bag of
19 (2 points) Bugs Bunny grows carrots and processes them into two different types of carrot products: baby carrots and carrot cake. A bag of baby carrots can be sold at the split- off point for $10 per bag, or it can be processed further into a carrot cake for an additional cost of $7 per unit. Carrot cake can be sold for $24 per unit. The joint production costs are $6. Should the baby carrots be processed further versus selling at the split-off point? O No, a bag of baby carrots should be sold at split-off point because the incremental loss would be $1. Yes, a bag of baby carrots should be processed further because the incremental profit would be $1. No, a bag of baby carrots should be sold at split-off point because the incremental loss would be $7. Yes, a bag of baby carrots should be processed further because the incremental profit would be $7. Question 20 (2 points) What is a profit center? A business segment whose manager has control over costs and revenues but has no control over the use of investment funds A business segment whose manager has control over costs or revenues or the use of investment funds A business segment whose manager has control over costs and also has control over revenues and the use of investment funds A business segment whose manager has no control over costs, revenues or the use of investment funds
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