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Item 20

Item 20

Time Remaining 1 hour 17 minutes 14 seconds

01:17:14

Xie company has two products, Alpha and Theta, which emerge from a joint process with a total joint cost of $13,000. Data for the product Alpha are shown below:

Produced from the process	5,000 units
Allocated share of joint costs	$10,500
Cost of processing further	$55,000
Price per unit
at split-off point	$6
after further processing	?

Q.) What is the price per unit after further processing that would make the company indifferent between process further and sell at split-off point?

A.) $ per unit