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In a joint processing operation, Nolen Company manufactures three grades of sugar from a common input, sugar cane. Joint processing costs up to the split-off

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In a joint processing operation, Nolen Company manufactures three grades of sugar from a common input, sugar cane. Joint processing costs up to the split-off point total $72,000 per year. The company allocates these costs to the joint products on the bass of their total sales value at the splt-off point. These sales values are as follows: raw suga sugar, $47,250 Help Save&Ex 9 $36,000; brown sugar, $39,500, and white Each product may be sold at the split-off point or processed further. Additional processing requires no special facities. The additional processing costs and the sales value after further processing for each product (on an annual basis) are shown below Additional Processing Sales Value 72,000 69,250 92,500 Product Raw sugar Brown sugar White sugar Costs $ 38,130 $ 27,600 $ 29,150 Required: a. Compute the Incremental profit (loss) for each product (Loss amounts should be indicated by a minus sign) Raw Sugar Brown Sugar White Incremental profit (loss) b. Which product or products should be sold at the splt-off point? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the bos for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Raw sugar Brown sugar White sugar Next Prev 19 of 20 Help Save & Eal profit (loss) b. Which product or products should be sold at the split-off point? (You may select more than one answer. Single click the box the question mark to produce a check mark for a correct answer and double click the box with the questlon mark to empty for a wrong answer. Any boxes left with a question mark will be automatically graded as Incorrect) Raw sugar Brown sugar White sugar c. Which product or products should be processed further? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the bo a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Raw sugar Brown sugar White suger Next >

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