Assume a company has three products-A, B, and C-that emerge from a joint process. The selling prices and outputs for each product at the split-off point are as follows: Product Selling Price Output A $ 33 $ 29 $ 24 B с 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: Product Additional Processing Costs Selling Price A $ 65,000 $ 37 $ 74,500 $34 $70,000 $30 B per pound 14,000 pounds per pound 18,000 pounds per pound 19,000 pounds с per pound per pound per pound What is financial advantage (disadvantage) of further processing Product B?
Assume a company has three products-A, B, and C-that emerge from a joint process. The selling prices and outputs for each product at the split-off point are as follows: Product Selling Price Output A $ 33 $ 29 $ 24 B с 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: Product Additional Processing Costs Selling Price A $ 65,000 $ 37 $ 74,500 $34 $70,000 $30 B per pound 14,000 pounds per pound 18,000 pounds per pound 19,000 pounds с per pound per pound per pound What is financial advantage (disadvantage) of further processing Product B?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject - account
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Transcribed Image Text:Assume a company has three products-A, B, and C-that emerge from a joint process. The selling prices and outputs for each
product at the split-off point are as follows:
Product Selling Price Output
A
$ 33
$ 29
$24
B
с
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:
per pound 14,000 pounds
per pound
18,000 pounds
per pound 19,000 pounds
Product Additional Processing Costs Selling Price
A
$ 65,000
$ 37
$ 74,500
$34
$70,000
$ 30
B
с
per pound
per pound
per pound
What is financial advantage (disadvantage) of further processing Product B?
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