Chapter 6, Problem 6.20P

To determine

Concept Introduction:

Managerial decisions includethe decision to sell the product or further process and sell it at a higher price. The further processing of the product involves additional costs. The decision is taken on the basis of incremental benefits from further processing.

Requirement-1:

The financial advantage (disadvantage) of further processing the product.

To determine

Concept Introduction:

Managerial decisions includethe decision to sell the product or further process and sell it at a higher price. The further processing of the product involves additional costs. The decision is taken on the basis of incremental benefits from further processing.

Requirement-2:

Whether theproduct should be sold at split off point orprocessed further.