Question: Oregon Hardwoods produces multiple products from a shared production process, including wood shavings and wood veneer. Up to the split - off point for these
Oregon Hardwoods produces multiple products from a shared production process, including wood shavings and wood veneer. Up to the splitoff point for these two products, the joint costs associated with their shared processes total $ million per year. Wood shavings can be sold for $ million in annual revenue, and wood veneer can be sold for $ million in annual revenue. Wood shavings can be processed further into pellets at a cost of $ million, which can then be sold for $ million. Wood veneer can be processed further into paneling at a cost of $ million, which can then be sold for $ million. The amount by which operating income will increase if wood shavings are processed further into wood pellets is $ million. The amount by which operating income will increase if wood veneer is processed further into paneling is $ million.
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