urred. These two products can be sold as is or processed further. Further processing of either product does not delay the production of subsequent batches of the joint products. Below are some other information: J1 J2 Unit selling price without further processing P 24 P 18 Unit selling price with further processing P 30 P 22 Total separate weekly variable costs of further processing P 100,000 P 90,000
urred. These two products can be sold as is or processed further. Further processing of either product does not delay the production of subsequent batches of the joint products. Below are some other information: J1 J2 Unit selling price without further processing P 24 P 18 Unit selling price with further processing P 30 P 22 Total separate weekly variable costs of further processing P 100,000 P 90,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Julius International produces 15,000 units of Product J1 and 30,000 units of J2 for which P800,000 common variable costs are incurred. These two products can be sold as is or processed further. Further processing of either product does not delay the production of subsequent batches of the joint products. Below are some other information:
J1 J2
Unit selling price without further processing P 24 P 18
Unit selling price with further processing P 30 P 22
Total separate weekly variable costs of further processing P 100,000 P 90,000
Unit selling price without further processing P 24 P 18
Unit selling price with further processing P 30 P 22
Total separate weekly variable costs of further processing P 100,000 P 90,000
To maximize Julius’ manufacturing contribution margin, the total separate variable costs of further processing that should be incurred each week are
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