Question
Ticon Corporation's manufacturing operation produces two joint products. Product delta sells for $24 per unit at the split-off point. After an additional $247,000 of
Ticon Corporation's manufacturing operation produces two joint products. Product delta sells for $24 per unit at the split-off point. After an additional $247,000 of processing costs are incurred, product omega sells for $84 per unit. In a typical month, 75,000 units are processed; 61,000 units become product delta and 14,000 units become product omega. The joint process has only variable costs. In a typical month, the conversion costs of the joint products amount to $426,000. Materials prices are volatile, and if prices are too high, the company stops production. Required: a. Calculate the maximum price that Ticon should pay for the materials. (Round your answer to 2 decimal places.) Maximum materials price per unit
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