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(increase, decrease) by $ Save uestion 7 (10 points) Complete Exercise 13-21 and

ID: 2403033 • Letter: #

Question

(increase, decrease) by $ Save uestion 7 (10 points) Complete Exercise 13-21 and answer the following questions: Remember to enter numeric amounts without a $ or. (a comma). If the answer is $20,000.00, then enter the number as 20000. Remember to round to 2 decimal places. For numbers such as 1.456, round up to 1.46 and for numbers such as 1452. round down to 1.45 Required: The contribution to income from selling the 32.000 kilograms of EPTOL at split-off would be S$ The contribution to income from processing the 32.000 kilograms of EPTOL into 9.000 kilograms of CHLOR would be $ Therefore, Chirp should (process further, sell at split-off), The profit to the company would be if it processed (higher, lower) by $ further. Save

Explanation / Answer

1) ans

calculation of contribution income if EPTOL is selling at split off point

:note:hear we fallow physical units method to allocate cost at splite off point

2)calculation of contribution income if eptol is further processed

decession:

it is advisable to sell EPTOL Only after further proceesing and sold as CHLOR

IT result increse of contribution by 143000$

particulars amount $ sales 32000units*6 192000 less:manifacturing cost 150000*32000/42000 114285.71 contribution   77714.29