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Chalk Corporation produces three products, X, Y, Z, from a single raw material input. Product Y can be sold at the split-off point for $44,000,

Chalk Corporation produces three products, X, Y, Z, from a single raw material input. Product Y can be sold at the split-off point for $44,000, or processed further at a cost of $17,000, and sold for $53,000.

Which of the following statements is true concerning Product Y?

Multiple Choice

  • Product Y should be processed further for a financial advantage of $36,000.

  • Product Y should be processed further for a financial advantage of $53,000.

  • Product Y should be sold at the split-off point.

  • Product Y should be processed further for a financial advantage of $9,000.

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