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Center Company currently produces three products from a joint process. The joint process has total costs of $500,000 per month. All three products, A, B
Center Company currently produces three products from a joint process. The joint process has total costs of $500,000 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: Units A 5,000 B 17,500 C 10,000 Immediate Sales Price $15 $20 $25 Later Sales Price $20 $25 $32 Unit Cost of Further Processing $6 $4 $3 a-1. Should Product A be sold immediately or sold after processing further? O Sell Now O Sell Later a-2. How much will the decision affect profit? Decision affects profit by $ 5,000 b-1. Should Product B be sold immediately or sold after processing further? Sell Now Sell Later b-2. How much will the decision affect profit? Decision affects profit by C-1. Should Product C be sold immediately or sold after processing further? Sell Now Sell Later C-1. Should Product C be sold immediately or sold after processing further? Sell Now Sell Later c-2. How much will the decision affect profit? Decision affects profit by
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