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Whispering & Sons produces tomato juice and tomato puree from fresh tomatoes grown by local farmers. The company purchases large crates of tomatoes and then
Whispering & Sons produces tomato juice and tomato puree from fresh tomatoes grown by local farmers.
The company purchases large crates of tomatoes and then washes, sorts, scalds, peels, and crushes them, at
which point the juice and the pulp are separately identifiable. Whispering currently processes the pulp
further to transform it into his greatgreatgrandmother's secretrecipe spaghetti sauce. The specifics on
each of these products for one month are as follows.Assuming that Whispering could otherwise sell the tomato puree asis for $instead of turning
it into spaghetti sauce would you recommend that he process both of these products past the splitoff
point? Show how much better or worse off Whispering would be if the puree and the juice are both
processed further.
Whispering & Sons is therefore
by a total $
by processing both
products beyond the splitoff point.
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