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Need help with B. Thank you Joint Cost Cheyenne, Inc. produces three products from a common input. The joint costs for a typical quarter follow:

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Joint Cost Cheyenne, Inc. produces three products from a common input. The joint costs for a typical quarter follow: Direct materials $47,000 Direct labor Overhead 57,000 62,000 The revenues from each product are as follows: Product A $76,000 Product B 81,000 Product C 31,000 Management is considering processing Product A beyond the split-off point, sales value of Product A to $116,000. However, to process Product A further means that the company must rent some special equipment costing $17,500 per quarter. Additional materials and labor also needed would cost $12,650 per quarter which would increase the a. What is the gross profit currently being earned by the three products for one quarter? $ 22,000 b. What is the effect on quarterly profits if the company decides to process Product A further? $31,850 x

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