kim Co. manufactures different product that can either be sold at the split-off point or processed further and then sold. The report for the most recent month shows the following information: Sales Value Additional Sales Value after Product at Split-off Variable Costs Further Processing Green lumber P79,800 P12,000 P89,000 Rough lumber 62,000 14,100 86,800 Sawdust 51,000 12,600 65,000 You are the head of management accounting department of kim Co. You are asked to recommend which products the company should process further and then sold. In your report, how much is the total increase in profit if the right products will be processed further based on your recommendation?
kim Co. manufactures different product that can either be sold at the split-off point or processed further and then sold. The report for the most recent month shows the following information:
Sales Value Additional Sales Value after
Product at Split-off Variable Costs Further Processing
Green lumber P79,800 P12,000 P89,000
Rough lumber 62,000 14,100 86,800
Sawdust 51,000 12,600 65,000
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