A company has three products the split-off point are as follows: Selling Price Amount of Output 14,000 pounds 18,000 pounds 19,000 pounds Product $33 per pound $29 per pound $24 per pound Beta Chi Delta Each product can be processed further beyond the split-off point. The additional processing costs for eacl after further processing are as follows: Additional Selling Price Product Processing Costs $65,000 $75,500 $37 per pound $34 per pound Beta Chi

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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A company has three products-Beta, Chi, and Delta-that emerge from a joint process. The selling prices and amount of output for each product at
the split-off point are as follows:
Amount of
Selling Price
Output
14,000 pounds
18,000 pounds
19,000 pounds
apse
Product
Beta
$33 per pound
points
Chi
$29 per pound
Delta
$24 per pound
8 00:36:54
Each product can be processed further beyond the split-off point. The additional processing costs for each product and their respective selling prices
after further processing are as follows:
Additional
Selling Price
$37 per pound
$34 per pound
$30 per pound
Product Processing Costs
$65,000
Beta
Chi
$75,500
Delta
$70,000
What is financial advantage (disadvantage) of further processing Product Chi?
Transcribed Image Text:D% A company has three products-Beta, Chi, and Delta-that emerge from a joint process. The selling prices and amount of output for each product at the split-off point are as follows: Amount of Selling Price Output 14,000 pounds 18,000 pounds 19,000 pounds apse Product Beta $33 per pound points Chi $29 per pound Delta $24 per pound 8 00:36:54 Each product can be processed further beyond the split-off point. The additional processing costs for each product and their respective selling prices after further processing are as follows: Additional Selling Price $37 per pound $34 per pound $30 per pound Product Processing Costs $65,000 Beta Chi $75,500 Delta $70,000 What is financial advantage (disadvantage) of further processing Product Chi?
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