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Question 6: Two products, unfinished lumber and sawdust; emerge from a joint process. Product unfinished lumber can be sold at the split-off point for $18
Question 6: Two products, unfinished lumber and sawdust; emerge from a joint process. Product unfinished lumber can be sold at the split-off point for $18 per unit, or it can be processed further for an additional total cost of $75,000 and then sold for $26 per unit. Unfinished lumber has been allocated $12,600 of the total joint costs of $19,000. A total of 12,000 units of product unfinished lumber are produced from the joint process Required 1: If product unfinished lumber is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point? Required 2: Based on your analysis in requirement (19, above), should the company process further
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