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Che 14 Assume a company has three products-A, B, and Cthat emerge from a joint process. The joint processing costs that are incurred up to
Che 14 Assume a company has three products-A, B, and Cthat emerge from a joint process. The joint processing costs that are incurred up to the split-off point equal $1,270,000. The selling prices and outputs for each product at the split-off point are as follows: 1 points Product Selling Price $ 33 per pound $ 29 per pound $ 24 per pound Output 14,000 pounds 18,000 pounds 19,000 pounds B Skipped Each product can be processed further beyond the split-off point. The additional processing costs for each product and their respective selling prices after further processing are as follows: eBook Additional Processing Costs $ 65,000 $ 72,000 $ 88,000 Product B C Print Selling Price $ 37 per pound $ 34 per pound $ 30 per pound References The company is trying to decide whether to retain or discontinue the entire joint manufacturing process. What is the financial advantage (disadvantage) of continuing to operate the entire joint manufacturing process? Multiple Choice $214.000 $205,000 O O $202.000 O $218,000 Check 9 Assume that a company uses the absorption costing approach to cost-plus pricing. It is considering the introduction of a new product. To determine a selling price, the company has gathered the following information: points Number of units to be produced and sold each year Unit product cost Estimated annual selling and administrative expenses Estimated investment required by the company Markup percentage on absorption cost 15,000 $ 30 $ 63,900 $ 780,000 35% Skipped What must be the company's required return on investment (ROI) that it uses to compute its selling prices? eBook Print Multiple Choice References O 14% O 10% O O 12% O 15%
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