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A company manufactures three products, A, B, and C from a single raw material input. Product C can be sold at the split-off point for
A company manufactures three products, A, B, and C from a single raw material input. Product C can be sold at the split-off point for total revenues of $48,000 or it can be processed further at a total cost of $13,000 and then sold for $60,000. Product C: would increase the company's overall net income by $1,000 if processed further and then sold. would increase the company's overall net income by $47,000 if processed further and then sold. would increase the company's overall net income by $12,000 if processed further and then sold. should be sold at the split-off point, rather than processed further
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