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The Curnutt Company uses a joint process to produce products A, B, C, and D. Each product may be sold at its split-off point or
The Curnutt Company uses a joint process to produce products A, B, C, and D. Each product may be sold at its split-off point or processed further. Joint processing costs for a single batch of joint products are $30,000. Other relevant data are as follows: Product Sales Value At Split-Off Additional Costs of Processing Sales Value of Final Product A $5,000 $8,000 $30,000 B 17,000 5,000 20,000 C 10,000 15,000 20,000 D 3,000 1,000 5,000 $35,000 $29,000 $75,000 Once A is produced, processing it further will cause profits to: A) Increase by $13,000 B) Increase by $17,000 C) Increase by $22,000 D) Increase by $30,000
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