two prod as ai and vi t emerge from a ont process. Product Q? has been allocated
ID: 2401362 • Letter: T
Question
two prod as ai and vi t emerge from a ont process. Product Q? has been allocated $36300 of the total ont costs of $57000 A total of 3 00 units of product Ql are produced from the joint process. Product Ql can be sold at the split-off point for $13 per unit, or it can be processed further for an additional total cost of $11100 and then sold for $15 per unit If product Ql is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point? Multiple Choice $35.400 ($31,400) ($45,600) $(4,900)Explanation / Answer
Additional Gain by processing further : ($15 -$13) X 3100 units = $6,200
Additional cost = $11,100
Financial disadvantage = $6,200 -$ 11,100 = -$4,900
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