Question: Senatory Limited produces several products from processing krypton, a rare mineral. Material and processing costs total $30,000 per tonne; one-third of the costs are allocated

Senatory Limited produces several products from processing krypton, a rare mineral. Material and processing costs total $30,000 per tonne; one-third of the costs are allocated to the product Castingard. The Castingard produced from a tonne of krypton can be either sold at the split- off point or processed further at a cost of $13,000 and then sold for $60,000. The sales value of Castingard at the split-off point is $50,000.
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Should Castingard be processed further or sold at the split-off point?

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Castingard should be processed further Sales value after further processing 60000 Sales value ... View full answer

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