Check my work Exercise 11-13 Sell or Process Further Decision (LO11-7) Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $54,000 per ton, one-fourth of which is allocated to product X15. Six thousand three hundred units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $17 each, or processed further at a total cost of $8,700 and then sold for $20 each. ped Required: 1. What is the financial advantage (disadvantage) of further processing product X15? 2. Should product X15 be processed further or sold at the split-off point? ook .sk 2. Product X15 should be Print erences Exercise 11-17 Dropping or Retaining a Segment (LO11-2] Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: ok Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Department Total Hardware Linens $ 4,280,000 $3,160,000 $ 1,120,000 1,363,000 948,000 415,000 2,917,000 2,212,000 705,000 2,220,000 1,350,000 870,000 697,000 $ 862,000 $ (165,000) sk Tint A study indicates that $376,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a 14% decrease in the sales of the Hardware Department. erences Required: What is the financial advantage (disadvantage) of discontinuing the Linens Department