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Cellestial Manufacturing Company produces Products A1, B2, C3, and D4 through a joint process. The joint costs amount to $200,000. If Processed Further Sales
Cellestial Manufacturing Company produces Products A1, B2, C3, and D4 through a joint process. The joint costs amount to $200,000. If Processed Further Sales Value Additional Product Units Produced at Split-Off Costs Sales Value A1 3,000 $10,000 $2,500 $15,000 B2 5,000 30,000 3,000 35,000 C3 4,000 20,000 4,000 25,000 D4 6,000 40,000 6,000 45,000 Which product(s) should be sold at split-off to maximize profits in the short run? a. Product B2 O b. Product D4 O c. Product Al Od. Products A1 and D4
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