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A company produces product trio in a joint manufacturing process. The joint cost allocated to product Trio amounts to 10 per unit. At the split-off
A company produces product trio in a joint manufacturing process. The joint cost allocated to product Trio amounts to 10 per unit. At the split-off point, the product can be sold to 15 per unit. The company is considering to incur additional processing cost of 4 for trio, after which the product can be sold for 22.
Should product trio be processed further or just sold at the split off point? Explain
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