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Please give the solutions and determine the total gross profit earned by three products for one quarter if Product A is processed further. Thank you
Please give the solutions and determine the total gross profit earned by three products for one quarter if Product A is processed further. Thank you so much!
Problem 4. Tripple products produce three products from a common input: Product A, Product B and Product C. The joint costs for a typical quarter are described below: Direct materials P20,000 Direct labor 30,000 Overhead 15,000 The revenue from each product are as follows: Product A, P43,000; Product B, P32,000; and Product C, P25,000 Management is considering processing Product A beyond the split-off point, which would increase the sales value of Product A to P76, 000. However, to process Product A further means that the company must rent some special equipment costing P17, 500 per quarter. Additional materials and labor also needed would cost P12, 650 per quarter. Determine the total gross profit earned by the three products for one quarter if Product A is processed furtherStep by Step Solution
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