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Sell or Process Further, Basic Analysis branded, and sold to supermarkets. The residual consists of organ meats and leftover pieces that are sold to sausage
Sell or Process Further, Basic Analysis
branded, and sold to supermarkets. The residual consists of organ meats and leftover pieces that are sold to sausage and hot dog processors. The joint costs for a typical week are as follows:
The revenues from each product are as follows: sirloin roasts, $; chops, $; spare ribs, $; and residual, $
shipping The increase in resource spending for these activities is estimated to be $ per week.
Required:
What is the gross profit earned by the original mix of products for one week?
$
Should the company separate the organ meats for shipment overseas or continue to sell them at splitoff?
Separate the organ meats for shipment overseas
What is the effect of the decision on weekly gross profit?
by $
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