Question: For a given by-product, 100 units can be sold at the split-off point for $8 each, or processed further at a cost of $12 each

For a given by-product, 100 units can be sold at the split-off point for $8 each, or processed further at a cost of $12 each and sold for $19.


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Should the by-product be processed further? Provide calculations and explain your answer.


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