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Hello Expert, kindly assist me with this Managerial Accounting question, much appreciation. Choose either COST or BENEFIT as your INCREMENTAL. Good Earth Products produces orange
Hello Expert, kindly assist me with this Managerial Accounting question, much appreciation. Choose either COST or BENEFIT as your INCREMENTAL.
Good Earth Products produces orange juice and candied orange peels. A 1,000-pound batch of oranges, costing $500, is transformed using labor of $50 into 100 pounds of orange peels and 300 pints of juice. The company has determined that the sales value of 100 pounds of peels at the split-off point is $350, and the value of a pint of juice (not pasteurized or bottled) is $0.50. Beyond the split-off point, the cost of sugar-coating and packaging the 100 pounds of peels is $60. The cost of pasteurizing and packaging the 300 pints of juice is $240. A 100-pound box of candied peels is sold to commercial baking companies for $600. Each pint of juice is sold for $1.75. Allocate joint costs using the relative sales values at the split-off point, and calculate the profit per 100-pound box of sugar-coated peels and the profit per pint of juice. (Round profit per pint of juice to 2 decimal places, eg. 15.25 and other answers to 0 decimal places, e.g. 5,725. Round intermediate calculations to 2 decimal places, e.g. 0.6254. Enter loss using either a negative sign preceding the number e.g. -15.25 or parentheses eg. (15.25).) What is the incremental benefit (cost) to the company of sugar-coating the peels rather than selling them in their condition at the split-off point? The incremental of sugar-coating the peels $ What is the incremental benefit (cost) to the company of pasteurizing and packaging a pint of juice rather than selling the juice at the split-off point? (Round answer to 2 decimal places, e.g. 15.25.) The incremental of pasteurizing and packaging a pint of juice per pintStep by Step Solution
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