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20. Prickly Pear Pots most popular product is the Deluxe 3000 cooking pot that has a sales value at split-off of $325 and separable costs

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20. Prickly Pear Pots most popular product is the Deluxe 3000 cooking pot that has a sales value at split-off of $325 and separable costs of $125. By melting down the metal, Prickly Pear is considering further processing its pots into serving platters. The selling price of the platters would be $75 higher than the sales value at split-off. Determine whether Prickly Pear should further process the Deluxe 3000 and provide the associated profit / loss to support your decision. a. Yes; Profit of $50 b. Yes; Profit of $275 c. No; Loss of $50 d. No; Loss of $75 19. Support cost allocation is important for a. Cost-based contracts awarded to the federal government for defense equipment. b. Determining that outsourcing is always the solution to reducing support department costs c. Preparing the assembly department budget that is used to evaluate the assembly manager's performance. d. Answers a. and c. are correct

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