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Five stars company has a joint process, which produces three products, A, B and C. Each product may be sold at split-off or processed further
Five stars company has a joint process, which produces three products, A, B and C. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year are $40,000. Other relevant data are: Sales Value Separable Processing Sales Value Product at Split-Off Costs After Split-Off at Completion A $15,500 $2,200 $17,700 B 18,000 8,000 23,000 24,000 11,500 37,500 Instructions: Which products should be processed further? Why
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