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Goldsmith Processors produces two joint products from a special type of ore. Product X - 1 sells for $ 8 per unit at the split
Goldsmith Processors produces two joint products from a special type of ore. Product X sells for $ per unit at the splitoff point. After an additional $ of processing costs are incurred, product X sells for $ per unit. In a typical period, units of ore are processed; units become product X and units become product X The joint process has only variable costs. In a typical period, the conversion costs of the joint products amount to $ Materials prices for the ore are volatile, and if prices are too high, the company stops production. The company uses the physical quantities method to allocate joint costs to the main products. Required: The management at Goldsmith is trying to determine the maximum perunit price that the company should pay for the ore. a Calculate the maximum price, per unit, that Goldsmith should pay for the ore. Note: Round your answer to decimal places.
Goldsmith Processors produces two joint products from a special type of ore. Product sells for $ per unit at the splitoff point. After an additional $ of processing costs are incurred, product sells for $ per unit. In a typical period, units of ore are processed; units become product and units become product
The joint process has only variable costs. In a typical period, the conversion costs of the joint products amount to $ Materials prices for the ore are volatile, and if prices are too high, the company stops production. The company uses the physical quantities method to allocate joint costs to the main products.
Required:
The management at Goldsmith is trying to determine the maximum perunit price that the company should pay for the ore.
a Calculate the maximum price, per unit, that Goldsmith should pay for the ore.
Note: Round your answer to decimal places.
Maximum materials price per unit
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