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 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 50,000 $ 8 $ 75,000 $ 10.00 Chocolate Delight 100,000 $ 10 $ 30,000 $ 10.50 Minty Wonders 25,000 $ 5 $ 20,000 $ 5.50 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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