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PLEASE SHOW WORK. Sell or Process Further JayCo Ltd. currently makes two kinds of string: Speed and Power. To make these, nylon is purchased, then
PLEASE SHOW WORK.
Sell or Process Further JayCo Ltd. currently makes two kinds of string: Speed and Power. To make these, nylon is purchased, then either the Speed or Power blend is woven in. Currently, management has been selling the Speed and Power strings as is, but is considering further processing to create a Speed Plus and a Power Plus, which adds a hybrid element to the string. Information about each follows: Speed Power $ $ Selling Price 22 per pack 22 per pack Annual Output 20,000 packs 19,500 packs Given the nature of the strings, the costs to process the string are very similar, but there is a difference in the selling price, given the current market for tennis string. Speed Plus Power Plus $ $ Selling Price 28 per pack 32 per pack $ $ Additional Processing Costs 160,000 per year 170,000 per year Determine if each type of string should be processed further or sold at the split off point. Show calculations and explain. Speed/Plus Power/Plus Should Jay Co Ltd. process further? Select: Select: ExplainStep by Step Solution
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