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On January 1, Z&Z Company has 6,500 units of Product A on hand. During the year, the company plans to sell 15,000 units of Product

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On January 1, Z&Z Company has 6,500 units of Product A on hand. During the year, the company plans to sell 15,000 units of Product A, and plans to have 5,000 units on hand at year-end. How many units of Product A must be produced during the year? A Company makes two products, W and P, in a joint process. At the split-off point, 50,000 units of W and 60,000 units of P are available each month. Monthly joint production costs are $290,000. Product W can be sold at the split-off point for $5.60 per unit. Product P either can be sold at the split-off point for $4.75 per unit or it can be further processed and sold for $7.20 per unit. If product Pis processed further, additional processing costs of $3.10 per unit will be incurred. Should the company

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