Question
Victoria Company Victoria Company manufactures three products in a joint process which costs $25,000. Each product can be sold at split-off or processed further and
Victoria Company Victoria Company manufactures three products in a joint process which costs $25,000. Each product can be sold at split-off or processed further and then sold. 10,000 units of each product are manufactured. The following information is available for the three products:
| Product | Sales Value at Split-off | Separable Processing Costs after Split-off | Sales Value at Completion |
| A | $12 | $9 | $21 |
| B | 10 | 4 | 17 |
| C | 15 | 6 | 19 |
a. If Product A is processed beyond the split-off point, profit will:
increase by $210,000
increase by $120,000
increase by $ 90,000
remain unchanged
b. To maximize profits, which products should Victoria process further?
Product A only
Product B only
Product C only
Products A, B, and C
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Total Quality Safety Management And Auditing
Authors: Michael B. Weinstein
1st Edition
1566702836, 978-1566702836
