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 $510,000 of joint processing costs monthly, which are allocated based on pounds produced. Information concerning this process for a recent month appears below:
| Candy type | Number of pounds | Price per pound at split-off | Further processing costs | Price after processing further | ||||||
| Sweet Meats | 51,000 | $ | 9 | $ | 132,000 | $ | 12.00 | |||
| Chocolate Delight | 101,000 | $ | 12 | $ | 31,000 | $ | 12.60 | |||
| Minty Wonders | 26,000 | $ | 6 | $ | 21,000 | $ | 6.40 | |||
Based on the information presented, which of the products should be processed further?
| Sweet Meats only. | ||
| Both Sweet Meats and Chocolate Delight. | ||
| Both Sweet Meats and Minty Wonders. | ||
| Minty Wonders only. |
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Authors: Mohammad Nurunnabi
1st Edition
1801174415, 9781801174411
