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Q - 7 ) Company x process materials extracted from mines. The most common raw material that it processes results in three joint products; Product
Q Company process materials extracted from mines. The most common raw material that it processes results in
three joint products; Product A Product B and Product C Each of these products can be sold as is or each can
be processed further and sold for a higher price. The company incurs joint costs of TL to process one batch
of the raw material that produces the three joint products. Company allocates joint costs to products based on
tonnage of the product. The following cost and sales information is available for one batch of each product:
Determine total net income after deciding which products should be sold at the splitoff point and which should be
processed further using incremental analysis.
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