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Shambala Corporation has a joint process that produces three products: P, G and T. Each product may be sold at split-off or processed further and
Shambala Corporation has a joint process that produces three products: P, G and T. Each product may be sold at split-off or processed further and then sold. Joint-processing costs for a year amount to $25,000. Other data follows: a) How much will processing product P further change operating income? Give specific dollar number. Should Shambala process P further? b) How much will processing product G further change operating income? Give specific dollar number. Should Shambala process G further? How much will processing product T further change operating income? Give specific dollar number. Should Shambala process T further? d) Consider that the estimate of the Joint product costs before split-off was lowered to only $20,000. How would that affect your decision on the three products
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