Question
Problem 17-30 Joint Costs (LO 17-4, 17-5) [The following information applies to the questions displayed below.] Allegheny River Sawmill manufactures two lumber products from a
Problem 17-30 Joint Costs (LO 17-4, 17-5) [The following information applies to the questions displayed below.] Allegheny River Sawmill manufactures two lumber products from a joint milling process. The two products developed are mine support braces (MSB) and unseasoned commercial building lumber (CBL). A standard production run incurs joint costs of $930,000 and results in 70,000 units of MSB and 108,000 units of CBL. Each MSB sells for $7, and each unit of CBL sells for $12.
If Allegheny River Sawmill chose not to process the mine support braces beyond the splitoff point, the contribution from the joint milling process would increase or decrease by what amount? |
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