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Bramble There produces a variety of soy products from soybeans and has just finished its first year of operations. Mark, the product manager, wants to
Bramble There produces a variety of soy products from soybeans and has just finished its first year of operations. Mark, the product manager, wants to evaluate the profitability of each product. Mark knows the process works essentially like this: the soybeans are processed in the company's manufacturing facility at a cost of $371,000, yielding both soy oil and soymeal. The soy oil can then be processed further into mayonnaise, while the soymeal can be processed further into animal feed. The quantities produced and sales values at the split-off point are as follows. Calculate the difference in allocated costs between the two methods used in parts (a) and (b). (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Given the revenue potential for each of these products at the split-off point, which method would you recommend that Bramble There use, and why? The allows the company to show gross margin for each product. eTextbook and Media
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