Question: Kelp Company produces three joint products from seaweed. At the split-off point, three basic products emerge: Sea Tea, Sea Paste, and Sea Powder. Each of these products can either be sold at the split-off point or be processed further. If they are processed further, the resulting products can be sold as delicacies to health food stores. Cost and revenue information is as follows: Sales Value and Additional Costs if Produced Further Product Pounds Sales Final Additional Produced Value at Sales Cost Split-Off Value Sea Tea 9,000 $60,000 $90,000 $35,000 Sea 4,800 71,100 160,000 50,000 Paste Sea 2,000 70,000 85,000 14,000 Powder Compute the incremental benefit (cost) of further processing to these products.
Question: Kelp Company produces three joint products from seaweed. At the split-off point, three basic products emerge: Sea Tea, Sea Paste, and Sea Powder. Each of these products can either be sold at the split-off point or be processed further. If they are processed further, the resulting products can be sold as delicacies to health food stores. Cost and revenue information is as follows: Sales Value and Additional Costs if Produced Further Product Pounds Sales Final Additional Produced Value at Sales Cost Split-Off Value Sea Tea 9,000 $60,000 $90,000 $35,000 Sea 4,800 71,100 160,000 50,000 Paste Sea 2,000 70,000 85,000 14,000 Powder Compute the incremental benefit (cost) of further processing to these products.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question:
Kelp Company produces three joint products from seaweed. At
the split-off point, three basic products emerge: Sea Tea, Sea
Paste, and Sea Powder. Each of these products can either be sold
at the split-off point or be processed further. If they are
processed further, the resulting products can be sold as delicacies
to health food stores. Cost and revenue information is as follows:
Sales Value and Additional Costs if
Produced Further
Product Pounds
Sales
Final
Additional
Produced
Value at Sales
Cost
Split-Off Value
Sea Tea 9,000
$60,000
$90,000
$35,000
Sea
4,800
71,100
160,000 50,000
Paste
Sea
2,000
70,000
85,000 14,000
Powder
Compute the incremental benefit (cost) of further processing to
these products.
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