Question
Decision Making #2-Sell or Process Further Joint Product Decision Lido manufactures A and B from a joint process cost = $70,000. Five thousand pounds of
Decision Making #2-Sell or Process Further Joint Product Decision Lido manufactures A and B from a joint process cost = $70,000. Five thousand pounds of A can be sold at split-off for $20 per pound or processed further at an additional cost of $12,000 and then sold for $24. Ten thousand pounds of B can be sold at split-off for $14 per pound or processed further at an additional cost of $20,000 and later sold for $17. Required: Which products should be processed further or not? Why? Give the dollar impact to income for each product based on your recommendation. Recommendation:
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