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Assume a company has three products A , B , and C that emerge from a joint process. The selling prices and outputs for each
Assume a company has three productsA B and Cthat emerge from a joint process. The selling prices and outputs for each product at the splitoff point are as follows:
Product Selling Price Output
A $ per pound pounds
B $ per pound pounds
C $ per pound pounds
Each product can be processed further beyond the splitoff point. The additional processing costs for each product and their respective selling prices after further processing are as follows:
Product Additional Processing Costs Selling Price
A $ $ per pound
B $ $ per pound
C $ $ per pound
What is financial advantage disadvantage of further processing if the company decides to further process all three products?
Multiple Choice
$
$
$
$
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