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Northwest Building Products ( NBP ) manufactures two lumber products from a joint milling process: residential building lumber ( RBL ) and commercial building lumber
Northwest Building Products NBP manufactures two lumber products from a joint milling process: residential building lumber RBL and commercial building lumber CBL A standard production run incurs joint costs of $ and results in units of RBL and units of CBL Each RBL sells for $ per unit and each CBL sells for $ per unit. Based on information in requirement should NBP choose to process RBL beyond splitoff?
No because additional processing results in an unavoidable loss of a:#### units of CBL
Yes because it can charge a higher price for the residential lumber after the additional processing.radio button unchecked of
Yes because total revenue for the residential lumber exceeds the incremental cost of the additional processing.radio button unchecked of
No because the increase in sales revenue is less than the extra processing costs.radio button unchecked of
No because additional processing results in an unavoidable loss of units of CBLradio button checked of
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