what is correct answer? A company processes raw cocoa into two intermediate products: cocoapowder and cocoa butter. The company has the option to sell cocoabutter as is or process it further into refined cocoa butter.Selling price of cocoa butter (as is): $50Additional processing cost to refine cocoa butter: $30Selling price of refined cocoa butter: $75How much profit (loss) does the company make by processing cocoabutter into refined cocoa butter rather than selling it as is?A. ($8)B. ($5)C. ($12)D. ($20)

To determine the profit (or loss) from processing cocoa butter into refined cocoa butter, we use the…

Answered: A company processes raw cocoa into two…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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How much profit (loss) does the company make by processing the intermediate product cane syrup into refined syrup rather than selling it as is?
Sheffield Corp. produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a recent period: Product Sales Valueat Split-off AdditionalVariable Costs Sales Value afterFurther Processing Green lumber $158600 $21000 $166000 Rough lumber 130000 28900 181600 Sawdust 104000 22100 130000 What is the increase in profit if the products which are most profitable if processed further are processed further? $26600 $13000 $85000 $260600
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Assume a company purchases honeycombs from beekeepers for $2.00 a pound. The honey can be sold in raw form for $3.20 a pound or it can be used to make honey drop candies. Each package of candies contains three-quarters of a pound of honey and can be sold for $4.40. In addition to the cost of the honey, making and selling each container of candies incurs additional variable costs of $1.10 per unit. The monthly fixed costs associated with making the candies include: Master candy-maker's salary Depreciation of candy-making equipment Salary of salesperson dedicated to this product Total fixed costs $ 3,900 400 2,000 $ 6,300 The candy-making equipment does not wear out through use and it has no resale value. Assuming the company makes and sells 8,000 containers of candy, what is the financial advantage (disadvantage) of continuing to process raw honey into candies?
Waterway Industries produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a recent period: Sales Value Additional at Split-off Variable Costs Further Processing Sales Value after Product $24000 $178000 Green lumber $159600 27500 169400 121000 Rough lumber 128400 19300 Sawdust 101000 What is the increase in profit if the appropriate products are processed further? O $23400 O $251000 O $29000 O $94200 2:56 PM 11/10/2019 hp end home ins prt se delete 4 hum ock + backspac
A1
Sell or Process Further Port Allen Chemical Company processes raw material D into joint products E and F. Raw material D costs $6 per liter. It costs $100 to convert 100 liters of D into 60 liters of E and 40 liters of F. Product F can be sold immediately for $6 per liter or processed further into Product G at an additional cost of $4 per liter. Product G can then be sold for $14 per liter. Determine whether Product F should be sold or processed further into Product G. • Calculate the net advantage (disadvantage) of further processing • Use a negative sign with your answer to indicate a net disadvantage (if applicable). $0 per liter
can you please help me figure this out
H1.
Concord Corporation produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a recent period: Additional Sales Value after Sales Value Product at Split-off Variable Costs Further Processing $186600 $25000 $161600 Green lumber 28500 176400 126000 Rough lumber 134400 20300 106000 Sawdust The additional profit that would result from processing rough lumber further is O $97500. O $21900. O $50400. O $147900. 11
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