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A corporation produces three products from a joint process. They can either be sold at the split-off point or processed further. Costs related to
A corporation produces three products from a joint process. They can either be sold at the split-off point or processed further. Costs related to each product is as follows: Sales value at split-off point Allocated joint costs Sales value after further processing Cost of further processing 1 3 6 $ 16,000 $ 12,000 $ 5,000 $ 6,000 $ 6,000 $ 6,000 $ 20,000 $ 18,000 $ 9,000 $ 5,000 $ 3,000 $ 2,000 For which product(s) above would it be more profitable for the company to sell at the split-off point rather than process further? Multiple Choice 1 only 6 only 1 and 6 3 and 6
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