Question
The Kirsten 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 Kirsten 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 $65,000. Other relevant data are as follows: - 10 Points Product Sales Value At Split-Off Additional Costs of Processing Sales Value of Final Product A $15,000 $18,000 $ 45,000 B 27,000 15,000 40,000 C 20,000 25,000 30,000 D 13,000 11,000 25,000 $75,000 $69,000 $140,000 Calculate the effect on profits of processing Product A further beyond the split-off point
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