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The executives at Swore and Bore recently decided to expand their product line to include headsets. Currently, they have two models. One is a corded
The executives at Swore and Bore recently decided to expand their product line to include headsets. Currently, they have two models. One is a corded headset called "MoronYute" and the other is a wireless version called "H0tM1c". Both headsets are joint products that start as the same base model. As such, they have a number of joint product costs. The base model could be sold as-is. Data for the additional costs and revenues for "MoronYute" and "H0tM1c" are shown below: Joint Processing Cost to Split-Off Point: $38,000 MoronYute $20,000 $15,000 $27,000 H0tM1c $16,000 $9,000 $37,000 **Required: Determine if each model of headset should be processed further or if should be sold as is. Complete a Sell or Process Further analysis to support your decision. - 6 Marks
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