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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
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 | $9,000 |
Cost of processing further | $55,000 |
Price per unit | |
at split-off point | $11 |
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?
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