How much will the decision affect profit

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Reference no: EM133342273

A company currently produces three products from a joint process. The joint process has total costs of $510,000 per month. All three products, A, B, and C, are immediately saleable as they come out of the joint process. Alternatively, any of the products could continue on with additional processing and be sold as a more complete product. The following information is available:

Product	Units	Immediate Sales Price	Later Sales Price	Unit Cost of Further Processing
A	4,450	$19	$20	$2.00
B	17,950	21	23	1
C	10,450	28	32	3

Required:

a-1. Should Product A be sold immediately or sold after processing further?

a-2. How much will the decision affect profit?

b-1. Should Product B be sold immediately or sold after processing further?

b-2. How much will the decision affect profit?

c-1. Should Product C be sold immediately or sold after processing further?

c-2. How much will the decision affect profit?

Reference no: EM133342273

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