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Bailey Products produces two joint products ( A and B ) . Prior to the split - off point, the company incurs costs of $
Bailey Products produces two joint products A and B Prior to the splitoff point, the company incurs costs of $ Product A weighs pounds, and Product B weighs pounds. Product A sells for $ per pound, and Product B sells for $ per pound.
Based on a physical measure of output, allocate joint costs to Products A and B
Compare the costs to the selling prices. Should the company sell products whose selling price isless than the allocated joint cost?
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