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5. Pandemic Company makes two products, M and N, in a joint process. At the split-off point, 40,000 units of M and 50,000 units of

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5. Pandemic Company makes two products, M and N, in a joint process. At the split-off point, 40,000 units of M and 50,000 units of N are available each month. Monthly joint production costs are $300,000. Product M can be sold at the split-off point for $4.20 per unit. Product N can either be sold at the split-off point for $3.20 per unit or it can be processed further and sold for $6.30 per unit. If N is processed further, additional processing costs of $2.50 per unit will be incurred. Required: 1)-If N is processed further and then sold, rather than being sold at the split-off point, what would the change in monthly operating income be? 2)- What would the selling price per unit of product N need to be after further processing in order for Pandemic Company to be economically indifferent between selling N at the split-off point or processing N further? (Non-anonymous question o) (6 Points)

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