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TB MC Qu. 14-70 Galveston Corporation has... Galveston Corporation has $212,000 of joint processing costs and is studying whether to process J and K
TB MC Qu. 14-70 Galveston Corporation has... Galveston Corporation has $212,000 of joint processing costs and is studying whether to process J and K beyond the split-off point. Information about J and K follows. Tons produced Selling price per ton at split-off Separable variable processing costs beyond split-off Selling price per ton after additional processing Product J 20,000 $56,000 Product K 17,000 $112,200 12 18 51 57 If Galveston desires to maximize total company Income, what should the firm do with regard to Products J and K? Product J A. Sell at split-off B. Sell at split-off C. Process beyond split-off D. Process beyond split-off Product K Sell at split-off Process beyond split-off Sell at split-off Process beyond split-off E. There is not enough information to judge. Multiple Choice Choice A Choice B Choice C Choice D
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