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Center Company currently produces three products from a joint process. The joint process has total costs of $513,000 per month. All three products, A,
Center Company currently produces three products from a joint process. The joint process has total costs of $513,000 per month. All three products, A, B & C, are immediately saleable as they come out of the joint process. Alternatively, any of the products could continue on with additional processing and be sold as a more complete product. The following information is available. Immediate Sales Later Sales Units A 4,550 Price $16 Price Unit Cost of Further Processing $171 $2.00 18,050 $21 $25 $1.50 C 10,550 $24 $31 $3.00 a-1. Should Product A be sold immediately or sold after processing further? Sell Now O Sell Later a-2. How much will the decision affect profit? Decision afacts profit by $ 4.550
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