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need help with the following question, any help will be appreciated: The Herman Company uses a joint process to produce products W, X, Y and
need help with the following question, any help will be appreciated:
The Herman Company uses a joint process to produce products W, X, Y and Z. Each product may be sold at its split-off point or processed further. Joint processing costs for a single batch of joint products are $32,500. Other relevant data are as follows: Product W X Y Z Sales Value at Split-Off $7,500 13,500 10,000 6,500 $37,500 Additional Costs of Processing $9,000 7,500 12,500 5,500 $34,500 Sales Value of Final Product $ 22,500 20,000 15,000 12,500 $70,000 a) Calculate the effect on profits of processing each product beyond the split-off point. b) Calculate the effect on profits of processing only those with a positive contribution beyond the split-off point. Enter your answers in the following spaceStep by Step Solution
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