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please please please 10 min I have only MARBLE Co. produces products A, and B from a joint production process. Each product may be sold
please please please 10 min I have only
MARBLE Co. produces products A, and B from a joint production process. Each product may be sold at the split-off point or processed further. Joint production costs of $90,000 per year are allocated to the products based on the relative number of units produced Two thousand units of product A, and three thousands of product B are produced. Product A can either be sold at the split-off point for $15 each or processed further at a total cost of $20,500 and then sold for $20 each. Whereas Product B can either be sold at the split- off point for $10 each or processed further at a total cost of $10,500 and then sold for $15 each. A. What is the financial advantage (disadvantage) of further processing each of the two products beyond the split-off point? (Show your calculations) B. Should products A and B be sold at the split-off point as is or processed further into an end productStep by Step Solution
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