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Corp. manufactures three products from a common input in a joint processing operation. Joint processing costs up to the spit-off point total $350,000 per year.
Corp. manufactures three products from a common input in a joint processing operation. Joint processing costs up to the spit-off point total $350,000 per year. The company allocates these costs to the joint products on the basis of their total sales value at the split-off point Each product may be sold at the split-off point or processed further. The additional processing costs and sales value after further processing for each product (on an annual basis) are: The "Further Processing Costs" consist of variable and avoidable fixed costs. Required: a) What is the the profit or loss resulting from further processing of each product? b) Identify if each of the intermediate products should be sold as is or processed further into an end product
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