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A company currently produces three products from a joint process. The joint process has total costs of $280,000 per month. All three products, A,
A company currently produces three products from a joint process. The joint process has total costs of $280,000 per month. All three products, A, B and C, are immediately saleable as they come out of the joint process. Alternatively, any of the products could continue on with additional processing and be sold as a more complete product. The following information is available: Product A Units 44,000 B C 88,000 132,000 Immediate Sales Price $ 8 10 Later Sales Price Unit Cost of Further Processing $ 13 15 $ 6.00 2.00 6 9 5.00 Required: a-1. Should Product A be sold immediately or sold after processing further? a-2. How much will the decision affect profit? b-1. Should Product B be sold immediately or sold after processing further? b-2. How much will the decision affect profit? c-1. Should Product C be sold immediately or sold after processing further? c-2. How much will the decision affect profit? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req C1 Req C2 Should Product A be sold immediately or sold after processing further? < Req A1 Req A2 >
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