Question
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
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 Processed Costs of Processing Further Split-Off Further Product C Product R 6,000 $ 75,000 $ 100,000 $ 20,000 4,000 $ 46,500 $ 55,000 $ 10,000 Which product(s) should be processed beyond the split-off point
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