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Tri Town Products produces two joint products ( A and B). Prior to the split-off point, the company incurs costs of $6,230. Product A weighs
Tri Town Products produces two joint products ( A and B). Prior to the split-off point, the company incurs costs of $6,230. Product A weighs 29 pounds, and Product B weighs 116 pounds. Product A sells for $93 per pound, and Product B sells for $34 per pound. Based on a physical measure of output, allocate joint costs to Products A and B. Compare the costs to the selling prices. Should the company sell products whose selling price is less than the allocated joint cost? Company sell products whose selling price is less than the allocated joint cost. eTextbook and Media
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