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Highlight the correct answors for the following questions. Each question carrios 1 mark. 1a) Products A, B & C are produced from single raw material
Highlight the correct answors for the following questions. Each question carrios 1 mark. 1a) Products A, B \& C are produced from single raw material input. The raw material costs are $90,000 from which 5,000 units of A,10,000 units of B and 15,000 units of C can be produced each period. Product A can be sold at the split off point for $2/unit, or it can be processed further at a cost of $12,500 \& then sold for $5/ unit What is the correct course of action regading Product A? A) It should be sold at the split-off point, since further processing would result in a loss of .50/unit B) It should be processed further, since this will increase profits by $2,500 each period C) It should be sold at the split-off point, since further processing will result in a loss of $2,500 each period D) It should be processed further, since this will increase proifts by $12,500 each period 1b) What is a joint product? A) Any product thart consists of several parts B) Any product produced by a firm with more thatn one product line C) Any product involved in a make or buy decision D) One of several proucts from a common input
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