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Company X processes materials extracted from the mines. The most common raw material it processes results in three common products; Product A, Product B, and
- Company X processes materials extracted from the mines. The most common raw material it processes results in three common products; Product A, Product B, and Product C. Each of these products can be sold as is, or each can be further processed and sold at a higher price. The company incurs a joint cost of 180,000 TL to process a batch of raw materials that produce three joint products. The company allocates the joint costs to the products according to the tonnage of the product. The following cost and sales information is available for one batch of each product:
Element | Product A | Product B | Product C |
Sales Value in the Division | 270.000 | 300.000 | 465.000 |
Shared Costs Allocated | 40.000 | 60.000 | 80.000 |
More Processing Costs | 110.000 | 83.000 | 250.000 |
Post Transaction Sales Value | 306.000 | 400.000 | 770.000 |
After deciding which products to sell at the split point and which need further processing using incremental analysis, determine the total net revenue.?
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