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Question 4 Normal 2017 (10 Marks, 18 Minutes) Bloom (Ltd) plants several hectares of sunflowers and as its first harvest is coming up, the production
Question 4 Normal 2017 (10 Marks, 18 Minutes) Bloom (Ltd) plants several hectares of sunflowers and as its first harvest is coming up, the production manager has asked you to help evaluate the following options available to the company: Sun snack is produced from Seedlings which are one of two raw materials jointly produced by passing the raw harvest through various roasting procedures. Other details relating to the entity's production process are the following: Seedlings may be sold at split off point for N$2.50 per kg and Seed roast is sold without further processing for N$4.00 per kg. Production costs incurred in converting Seedlings into Sun snack are N\$1.15 per kg of Seedlings used. Each kilogram of Sun snack requires 1.5kg of seedling. Sun snack is sold for N$8perkg
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