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Splitoff point

Price: $1.99


A company manufactures three products using the same production process. The
costs incurred up to the split-off point are $200,000. These costs are allocated to the products
on the basis of their sales value at the split-off point. The number of units produced,
the selling prices per unit of the three products at the split-off point and after further processing,
and the additional processing costs are as follows.


Which product(s) should be processed further and which should be sold at the splitoff
point?

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