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5.1 2 Points Fett Corporation has a joint process that produces three products: I, G and 88. Each product may be sold at split-off or
5.1 2 Points Fett Corporation has a joint process that produces three products: I, G and 88. Each product may be sold at split-off or processed further and then sold. Joint-processing costs for a year amount to $20,000. Other data follows: Product Sales Value at Split-Off Separable Processing Costs after Split-Off Sales Value at Completion 1 G $32,000 16,500 $5,000 7,500 $39,000 29,000 88 6,400 8,000 10,000 Which product(s), if any should the company process beyond the split-off point? Which, if any, should they sell at the split-off point? Clearly show your work Q5.2 1 Point Suppose the company currently sells all products at the split-off point. What would be the change in net operating income if the company chose the optimal sales-at-split-off vs. sales-after- processing combination
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