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A company produces products A and B, each of which can be sold at an intermediate phase of production or can be processed further to
A company produces products A and B, each of which can be sold at an intermediate phase of production or can be processed further to make a more refined product. Information about the company's products follows: Product A B Costs incurred to get product to intermediate stage $65,000 $35,000 O Decrease in profitability of $75,000 O Increase in profitability of $5,000 O Increase in profitability of $80,000 O Increase in profitability of $85,000 Sales value at Sales value at Additional intermediate stage processing costs completion O None of the above 4 $150,000 $59,000 $75,000 $15,000 What would be the impact on profitability of processing Product A further, rather than selling product A at the intermediate stage? $230,000 $69,000
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