Question 56

Compass Rose Magnetics manufactures two products out of a joint production process, North and South.The joint costs incurred are $500,000 for a standard run that generates 32,000 kg of North and 48,000 kg of South.North sells for $13.50/kg and South sells for $17.75/kg.The 32,000kg of North can be further processed into 27,500 kg of West at additional processing costs of $250,000 to be sold at $19.00/kg.The 48,000 kg of South can be further processed into 35,000 kg of East at additoonal processing costs of $175,000 to be sold at $23.00/kg.What gross margin percentage would Compass Rose Magnetics report after further processing?

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