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Annie's Apple Orchard harvests Granny Smith Apples and incurs joint costs of $2,000. Once they are picked, she can either sell the apples or produce
Annie's Apple Orchard harvests Granny Smith Apples and incurs joint costs of $2,000. Once they are picked, she can either sell the apples or produce apple cider. She gives you the following information: Sales price of apples: $.30 each, quantity of 10,000 apples Sales price after processing to apple cider: $.35 per gallon. Annie can sell 9,000 gallons but the additional costs to process it further are $250 Annie should process the apples into Cider, because the net realizable value is higher for Cider. O True 2 pts O False
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