Jordan Corporation produces Products X and Y from a single input in a joint production process. Total
Question:
Jordan Corporation produces Products X and Y from a single input in a joint production process. Total joint processing costs are $200,000.
Product XProduct YUnits produced2,0002,500Per unit sales value at split-off$48.00$52.00Per unit sales value if processed further$55.00$70.00Total costs to process further$20,000$38,000
Based on the information above, which of the products should be processed further?
a.Product XProduct YNoYesb.Product XProduct YYesNoc.Product XProduct YYesYesd.Product XProduct YNoNo
Jordan Corporation produces Products X and Y from a single input in a joint production process. Total joint processing costs are $200,000.
Product XProduct YUnits produced2,0002,500Per unit sales value at split-off$48.00$52.00Per unit sales value if processed further$55.00$70.00Total costs to process further$20,000$38,000
Based on the information above, which of the products should be processed further?
a.Product XProduct YNoYesb.Product XProduct YYesNoc.Product XProduct YYesYesd.Product XProduct YNoNo
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