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Ardent Manufacturing produces two products, XT and LQ, from a joint production process. Product XT has been allocated $22,400 of the total joint costs of $50,000. A total of 4,000 units of Product XT were produced. Product XT can be sold at the split-off point for $13 per unit, or it can be further processed at an additional cost of $14,500 and then sold for $17 per unit. How would the company's overall profit change if Product XT is processed further instead of being sold immediately at the split-off point? a. $1,800 more profit b. $8,200 less profit c. $12,200 less profit d. $1,500 more profit provide answer

Ardent Manufacturing produces two products, XT and LQ, from a joint production process. Product XT has been allocated $22,400 of the total joint costs of $50,000. A total of 4,000 units of Product XT were produced. Product XT can be sold at the split-off point for $13 per unit, or it can be further processed at an additional cost of $14,500 and then sold for $17 per unit. How would the company's overall profit change if Product XT is processed further instead of being sold immediately at the split-off point? a. $1,800 more profit b. $8,200 less profit c. $12,200 less profit d. $1,500 more profit provide answer

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 6BE
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Ardent Manufacturing produces two products, XT and LQ, from a joint production process. Product XT has been allocated $22,400 of the total joint costs of $50,000. A total of 4,000 units of Product XT were produced. Product XT can be sold at the split-off point for $13 per unit, or it can be further processed at an additional cost of $14,500 and then sold for $17 per unit. How would the company's overall profit change if Product XT is processed further instead of being sold immediately at the split-off point? a. $1,800 more profit b. $8,200 less profit c. $12,200 less profit d. $1,500 more profit provide answer

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