Question
California Chemical Co. produces several chemical compounds. Each compound can be sold at the split-off point or processed further. The following results apply to May:
California Chemical Co. produces several chemical compounds. Each compound can be sold at the split-off point or processed further. The following results apply to May:
Compound
Sales Value at Split-off Point
Costs of Additional Processing
Sales Value After Additional Processing
Chem I
$59,600
$7,300
$74,400
Chem II
70,700
17,500
82,600
Chem III
46,700
6,200
58,750
After determining which products should be sold at the split-off point and which should be processed further, the total revenue provided by these three products would be
A)
$202,250.
B)
$215,750.
C)
$175,750.
D)
$203,850.
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