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Harris Corp. manufactures three products from a common input in a joint processing operation. Join processing costs up to the split-off point total $200,000 per
Harris Corp. manufactures three products from a common input in a joint processing operation. Join processing costs up to the split-off point total $200,000 per year. The company allocates these costs to the joint products on the basis of their total sales value at the split-off point. Each product may be sold at the split-off point or processed further. The additional processing costs and sales value after further processing for each product ( on an annual basis)are: The ''Further Processing Costs'' consists of variable and avoidable fixed costs. Which product or products should be sold at the split-off point and which products or products should be processed further? ANSWER AND SHOW WORK
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