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a Pownal Powder Puffs produces powder in a joint processing operation. Each powder can be sold in its current condition or processed further and specialized
a Pownal Powder Puffs produces powder in a joint processing operation. Each powder can be sold in its current condition or processed further and specialized for high priced department stores. Data concerning the various products appear below. Joint processing costs are $200,000, which are allocated based on the number of pounds produced. Total further Type of Number of Price per pound Price after powder pounds at split-off costs processing further processing Talcom $10 $25,000 10,000 $12.0 Baby $8 $12,000 20,000 $9.0 Regular $5 $30,000 50,000 $5.5 The net advantage (or disadvantage) of processing Baby further is: A $20,000 advantage to process further A $5,000 disadvantage to process further O A $8,000 advantage to process further O A $20,000 disadvantage to process further
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