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Lamar Corporation uses a joint process to produce products A, B, and C. Each product may be sold at splitoff or processed further and then
Lamar Corporation uses a joint process to produce products A, B, and C. Each product may be sold at splitoff or processed further and then sold. Joint processing-costs for the year amounted to $100,000. Other information is presented below: Separable Processing Sales Value Costs after Sales Value Product at Splitoff Splitoff at Completion A $94,000 $28,000 $116,000 B 60,000 8,000 82,000 C 66,000 14,000 80,000 Required: a. Which products, if any, should be processed further? b. If all three products were processed further, what would be the effect on profits
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