A company produces two joint products A and B. Joint costs for the period are R400000. The company received an offer and is considering selling product A at the split off point for R430000 and process product B further and sell it then as product BB for R68 each. The additional processing costs for product BB will be R7.50 per kg. Calculate the net additional income of this offer for product A and product B. Indicate if the offer must be accepted or declined. Show your detailed answers on the response table. Calculate the net additional income of this offer for product A and product B. Indicate if the offer must be accepted or declined. Show your detailed answers on the response table. The whole offer must either be accepted or declined. If we accept Product A; additional income 40000 additional cost 22000 net effect 18000 We do accept the offer Product B; Additional income 67500 Additional cost 26250 Net effect 41250 We do accept the offer A company produces two joint products A and B. Joint costs for the period are R400000. The company received an offer and is considering selling product A at the split off point for R430000 and process product B further and sell it then as product BB for R68 each. The additional processing costs for product BB will be R7.50 per kg. Calculate the net additional income of this offer for product A and product B. Indicate if the offer must be accepted or declined. Show your detailed answers on the response table. Calculate the net additional income of this offer for product A and product B. Indicate if the offer must be accepted or declined. Show your detailed answers on the response table. The whole offer must either be accepted or declined. If we accept Product A; additional income 40000 additional cost 22000 net effect 18000 We do accept the offer Product B; Additional income 67500 Additional cost 26250 Net effect 41250 We do accept the offer