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?

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