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Prepare an incremental analysis for the sell-or-process

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Grand Scarf Company manufactures 3 products using the same production process. The costs incurred up to the split-off point are RM20,000. These costs are allocated to the products on the basis of their sales value at the split-off point. Data for the operation is as below:

Product

Number of
Units
Produced

Selling Price
at Split-off
(per unit)
(RM)

Selling Price
after Processing
(per HMO
(RM)

Additional
Processing
Costs
(RM)

Kate

2.000

6.20

11.00

11.000

Embun

3.000

7.70

12.50

8,000

Catalina

1,000

16.30

19.40

2,000

Problem 1: Prepare an incremental analysis for the sell-or-process-further decision.

Reference no: EM132653754

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