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 $500,000 of joint processing costs monthly, which are allocated based on net realizable value at split-off. Information concerning this process for a recent month appears below Candy type Sweet Meats Chocolate Delight Minty Wonders Number of pounds 50.000 100.000 25.000 Price per pound at split-off $ 8 10 $ $ 5 Further processing coSts $ 75.000 S ( 30,000) $ 20.000 Price after processing further $ 10.00 10.50 S S 5.50 425,000 1,020000 112 000
3. If Sweet Meats is processed further, what is the total profit on the month's production of Sweet Meats, including Sweet Meat's share of the joint processing costs?
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