Multiverse currently sells both products at the split-off point. If Multiverse makes decisions which maximizes profit, Multiverse’s profit will increase by10,000P50,000P4,000P16,000 Multiverse Corporation produces two products from a joint process. Information about the twojoint products follows:Anticipated productionSelling price Ib. at split-offAdditional processing costs/lb. after Split-off (allvariable)Selling prices/lb. after further processingProduct X2,000 lbs.P30P15Product Y4,000 lbs.P16P30P40Р50The cost of the joint process is P85,000.

Calculation of Profit is products are sold at split off Point Particulars Product A Product B…

Answered: Multiverse currently sells both…

Multiverse currently sells both products at the split-off point. If Multiverse makes decisions which maximizes profit, Multiverse’s profit will increase by 10,000 P50,000 P4,000 P16,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 64P: Sell or Process Further, Basic Analysis Shenista Inc. produces four products (Alpha, Beta, Gamma,...

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Question

Multiverse currently sells both products at the split-off point. If Multiverse makes decisions which maximizes profit, Multiverse’s profit will increase by

10,000

P50,000

P4,000

P16,000

Multiverse Corporation produces two products from a joint process. Information about the two
joint products follows:
Anticipated production
Selling price Ib. at split-off
Additional processing costs/lb. after Split-off (all
variable)
Selling prices/lb. after further processing
Product X
2,000 lbs.
P30
P15
Product Y
4,000 lbs.
P16
P30
P40
Р50
The cost of the joint process is P85,000.

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