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XYZ Company manufactures products K and G from a joint process. Product K has been allocated $7,500 of total joint costs of $30,000 for the
XYZ Company manufactures products K and G from a joint process. Product K has been allocated $7,500 of total joint costs of $30,000 for the 1,500 units produced. K can be sold at the splitoff point for $4 per unit, or it can be processed further with additional costs of $2,000 and sold for $7 per unit for the 1,500 units produced. If K is processed further and sold, the result would be: a gain of $2,500 from further processing. a gain of $1,000 from further processing. a breakeven situation. an overall loss of $1,500
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