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Exercise 12-6 Sell or Process Further [L02] In ajoint processing operation, Nolen Company manufactures three grades of sugar from a common input, sugar cane. Joint
Exercise 12-6 Sell or Process Further [L02] In ajoint processing operation, Nolen Company manufactures three grades of sugar from a common input, sugar cane. Joint processing costs up to the splitoff point total $41,500 per year. The company allocates these costs to thejoint products on the basis of their total sales value at the split-off point These sales values are as follows: raw sugar, $20,700; brown sugar, $20,700; and white sugar, $23,600. Each product may be sold at the splitoff point or processed further. Additional processing requires no special facilities. The additional processing costs and the sales value after further processing for each product (on an annual basis) are shown below: Additional Sales Product Processing Costs Value Raw sugar $20,100 $40,300 Brown sugar $13,700 $35,500 White sugar $ 6,600 $42,000 Required: a. Compute the Incremental prot (loss) for each product. (Loss amounts should be indicated by a minus sign.) b. Which product or products should be sold at the split-off point? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) 9 Raw sugar a Brown sugar 9 White sugar c. Which product or products Should be processed further? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) 8 Raw sugar a Brown sugar 9 White sugar
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