Question
Delite Confectionary Company produces various types of candies. Several candies could be sold at the split-off point or processed further and sold in a different
Delite Confectionary Company produces various types of candies. Several candies could be sold at the split-off point or processed further and sold in a different form after further processing. The candies are produced in a joint processing operation with $600,000 of joint processing costs monthly, which are allocated based on pounds produced. Information concerning this process for a recent month appears below:
Candy typeNumber of poundsPrice per pound at split-offFurther processing costsPrice after processing furtherSweet Meats60,000$7$150,000$10.00Chocolate Delight110,000$10$40,000$10.70Minty Wonders35,000$4$30,000$4.60
Based on the information presented, which of the products should be processed further?
Multiple Choice
- Sweet Meats only.
- Both Sweet Meats and Chocolate Delight.
- Minty Wonders only.
- Both Sweet Meats and Minty Wonders.
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