Question: ABC Co. develops four mobile applications in a joint process as follows: Hunger station Talabat Mrsool Tawakalna Total Applications downloaded 52,000 60,000 18,000 28,000 158,000
| ABC Co. develops four mobile applications in a joint process as follows: | ||||||||||
| Hunger station | Talabat | Mrsool | Tawakalna | Total | ||||||
| Applications downloaded | 52,000 | 60,000 | 18,000 | 28,000 | 158,000 | |||||
| Sales value at split off | $240,000 | $40,000 | $10,000 | $35,000 | $325,000 | |||||
| Additional cost if developed further | $28,000 | $40,000 | $20,000 | $15,000 | $103,000 | |||||
| Sales value if processed further | $280,000 | $60,000 | $15,000 | $45,000 | $400,000 | |||||
| Joint costs | $250,000 | |||||||||
| Required: | ||||||||||
| (a) Determine which products should be sold at split-off and which should be processed further (show supporting calculations/schedule). | ||||||||||
| (b) Assuming the company makes decisions that are in its best interests for overall profitability, what would be the company's gross margin? | ||||||||||
Just need a simple solution, PLEASE try your best
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
