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Problem 5 Digger Company realizes three products from a single mining process: Products J1, A2, and V3. Each product may be sold as is in
Problem 5 Digger Company realizes three products from a single mining process: Products J1, A2, and V3. Each product may be sold as is in its raw form or processed further into a more refined state. The additional processing requires no expanded capacity and production costs are entirely variable. Sales values and cost information are presented below: Product JI A2 V3 Units Produced 14,000 10,000 6,000 Sales Value As Is $ 60,000 100,000 58,000 If Processed Further Sales Additional Valuc Costs $100,000 $22,000 108,000 16,000 78,000 20,000 (a.) Determine whether Digger Company should sell each product as is or after further processing
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