Assume a company has two products-A and B-that emerge from a joint process. A total of 2,000 units of Product A are produced from the joint process. Product A can be sold at the split-off point for $16 per unit, or it can be processed further for an additional total cost of $16,000 and then sold for $25per unit. What is the incremental revenue earned by further processing Product A?Multiple Choice$18,000$8,000$4,000$2,000

In computation and allocation of joint costs it can be done in the following methods namely: 1.…

Answered: O S18.000 o00es O O $400 O s2.000

Business

Accounting

O S18.000 o00es O O $400 O s2.000

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

Assume a company has two products-A and B-that emerge from a joint process. A total of 2,000 units of Product A are produced from the joint process. Product A can be sold at the split-off point for $16 per unit, or it can be processed further for an additional total cost of $16,000 and then sold for $25
per unit. What is the incremental revenue earned by further processing Product A?
Multiple Choice
$18,000
$8,000
$4,000
$2,000

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Sandpiper Inc. has a division that manufactures a component that sells for $165 and has a variable cost of $45. Another division of the company wants to purchase the component Fixed cost per unit of the component is $20. What is the minimum transfer price if the division is operating at capacity? OA. $165 OB. $45 OC. $20 OD. $65
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What is the amount of joint costs assigned?