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Assume a company has three products-A, B, and C-that emerge from a joint process. The selling prices and outputs for each product at the split-
Assume a company has three products-A, B, and C-that emerge from a joint process. The selling prices and outputs for each product at the split- off point are as follows: Product A Selling Price $33 per pound $29 per pound $24 per pound Output 14,000 pounds 18,000 pounds 19,000 pounds B C Each product can be processed further beyond the split-off point. The additional processing costs for each product and their respective selling prices after further processing are as follows: Product A Additional Processing Costs $63,000 $72,000 $88,000 Selling Price $37 per pound $34 per pound $30 per pound What is financial advantage (disadvantage) of further processing if the company decides to further process all three products
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