Question
7 A company produces products C and R from a joint production process. Each product may be sold at the split-off point or processed further.
7 A company produces products C and R from a joint production process. Each product may be sold at the split-off point or processed further. Joint production costs of $95,000 per year are allocated to the products based on the relative number of units produced. Data for the company's operations for last year follow: Units Produced Sales Values at Sales Values If Split-Off Processed Product C Product R 6,000 4,000 $75,000 Further $ 100,000 $ 46,500 $ 55,000 Costs of Processing Further $ 20,000 $10,000 Which product(s) should be processed beyond the split-off point? Show calculations that support your
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