Question
Swifty Corporation produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a
Swifty Corporation produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a recent period:
| Product | Sales Value at Split-off | Additional Variable Costs | Sales Value after Further Processing | |
| Green lumber | $159600 | $24600 | $184200 | |
| Rough lumber | 124000 | 28100 | 173600 | |
| Sawdust | 104000 | 19900 | 132000 |
The additional profit that would result from processing rough lumber further is
$21500.
$49600.
$95900.
$145500.
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Management And Cost Accounting
Authors: Colin Drury
5th Edition
1861525362, 978-1861525369
