Assume a company has three products A , B , and C that emerge from a joint
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Question:
Assume a company has three productsA B and C that emerge from a joint process. The selling prices and outputs for each product at the splitoff point are as follows:
Product
Selling Price
Output
A
$ per pound
pounds
B
$ per pound
pounds
C
$ per pound
pounds
Each product can be processed further beyond the splitoff point. The additional processing costs for each product and their respective selling prices after truther processing are as follows:
Product
Additional Processing Costs
Selling Price
A
$ per pound
B
$ per pound
C
$ per pound
What is the financial advantage disadvantage of further processing if the company decides to further process all three products?
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