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The Mussina Chemical Company produced three inint products at a joint cost of $109,000. These Rueducts were processed further and sold as follows: Chemical Product
The Mussina Chemical Company produced three inint products at a joint cost of $109,000. These Rueducts were processed further and sold as follows: Chemical Product Sales Additional Processing Costs $230,000 $170,000 320,000 305,000 205,000 60,000 The Company has had an anaactunity to sell at split-off directly to other processors li that alternative had been selected, sales would have been A, $49,000; B, $38,000 and C. $51,000 The company expects to operate at the same level of production and sales in the forthcoming vean. Could the company increase operating income by altering its process decisions? If so, what would be the expected overall operating income? 1. Could the company increase Recating income by altering its bracess. desisions? If so, what would be the expected overall aperating income? 2. Which products should be processed further and which should be sold at split:off
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