A firm has three different products where it can sell an input for that product on an external market: Product AAA, BBB, and CCC. The inputs that can be sold for these products are aaa, bbb, and ccc, respectively. The inputs, aaa, bbb, and ccc are all byproducts of a common extraction process that costs the firm $95,493 per period. Sales price of input on external market Cost to process further Sales price of processed good on external market aaa/AAA bbb/BBB ccc/CCC $300,098 $168,144 $400,575 $188,270 $287,253 $648,916 $1,267,049 $124,908 $1,940,685
A firm has three different products where it can sell an input for that product on an external market: Product AAA, BBB, and CCC. The inputs that can be sold for these products are aaa, bbb, and ccc, respectively. The inputs, aaa, bbb, and ccc are all byproducts of a common extraction process that costs the firm $95,493 per period. Sales price of input on external market Cost to process further Sales price of processed good on external market aaa/AAA bbb/BBB ccc/CCC $300,098 $168,144 $400,575 $188,270 $287,253 $648,916 $1,267,049 $124,908 $1,940,685
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: accounting
Transcribed Image Text:A firm has three different products where it can sell an input for that product on
an external market: Product AAA, BBB, and CCC. The inputs that can be sold for
these products are aaa, bbb, and ccc, respectively. The inputs, aaa, bbb, and ccc
are all byproducts of a common extraction process that costs the firm $95,493
per period.
Sales price of input on external market
Cost to process further
Sales price of processed good on external
market
aaa/AAA
bbb/BBB ccc/CCC
$300,098 $168,144 $400,575
$188,270 $287,253 $648,916
$1,267,049 $124,908 $1,940,685
What is the firm's profit, assuming it makes the most profitable sell-or-process-
further decision for each product?
Round answer to whole dollars if necessary. Enter your answer as a number only
(no dollar signs, commas, or decimals).
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