Answered step by step
Verified Expert Solution
Question
1 Approved Answer
pter 21 Relevant Costs and Special Or... Saved Help Save & Exi Kelp Company produces three joint products from seaweed. At the split-off point,
pter 21 Relevant Costs and Special Or... Saved Help Save & Exi Kelp Company produces three joint products from seaweed. At the split-off point, three basic products emerge: Sea Tea, Sea Paste, and Sea Powder. Each of these products can either be sold at the split-off point or be processed further. If they are processed further, the resulting products can be sold as delicacies to health food stores. Cost and revenue information is as follows. Sales Value and Additional Costs If Processed Further Sales Value at Final Sales Value TYTT Split-Off $60,000 Pounds Produced 9,000 3,700 Sea Powder 2,000 70,000 Product Sea Tea Sea Paste 72,500 $ 90,000 160,000 85,000 Additional Cost $35,000 50,000 14,000 Required: a-1. Compute the incremental benefit (cost) of further processing to these products. a-2. Which products should Kelp process beyond the split-off point? b. What is the selling price per pound of Sea Paste at the split-off point at which the company is indifferent? Complete this question by entering your answers in the tabs below. Req A11 Req A2 Req B What is the selling price per pound of Sea Paste at the split-off point at which the company is indifferent? (Round your final answer to 2 decimal places.) Minimum price $ 29.73 per pound Chec
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started