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Farrugia Corporation produces two intermediate products, A and B, from a common input. Intermediate product A can be further processed into Product X. Intermediate product
Farrugia Corporation produces two intermediate products, A and B, from a common input. Intermediate product A can be further processed into Product X. Intermediate product B can be further processed into Product Y. The common input is purchased in batches that cost $45 each and the cost of processing a batch to produce intermediate products A and B is $18. Intermediate product A can be sold as is for $28 or processed further for $17 to make Product X that
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