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The Meadows Company manufactures a number of products from the same raw material. Joint processing costs total $10,000 per month. Product Z could be sold

The Meadows Company manufactures a number of products from the same raw material. Joint processing costs total $10,000 per month. Product Z could be sold at the cut-off point for $18,000 per month or it can be further processed at a cost of $9,000 per month and then sold for $26,000. Meadows Company should: Answer further process product Z because its incremental revenues will exceed incremental costs by $7,000. further process product Z because its incremental revenues will exceed incremental costs by $17,000. sell product Z at the split-off point because its incremental costs will exceed incremental revenues by $1,000. sell product Z at the split-off point because its incremental costs will exceed incremental revenues by $7,000.

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