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Question 5 BNM Company makes two products from a common ingredient. Joint processing costs up to the split-off point total $40,500 a year. The company
Question 5 BNM Company makes two products from a common ingredient. Joint processing costs up to the split-off point total $40,500 a year. The company allocates these costs to the joint products based on their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Required: 1. What is financial advantage or disadvantage of processing Product P beyond the split-off point? 2. What is financial advantage or disadvantage of processing Product B beyond the split-off point? 3. What is the minimum amount the company should accept for Product P if it is to be sold at the split-off point? 4. What is the minimum amount the company should accept for Product B if it is to be sold at the split-off point
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