Bobcat Company produces three products (X, Y, and Z) in a joint process costing $100,000.The products can
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Question:
Bobcat Company produces three products (X, Y, and Z) in a joint process costing $100,000.The products can be sold as they leave the process, or they can be processed further and sold.The cost accountant has provided you with the following information:
Product. unit volume. sale price at split off. separable further processing cost
X. 3000. $10. $60000
Y. 4000 $15 $50000
Z 8000 $20 $90000
Sales price after further processing
X $25
Y $30
Z $35
REQUIRED:
Which products should Bobcat Company sell at split-off, and which products should be processed further?
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