Center Company currently produces three products from a joint process. The joint process has total...
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Center Company currently produces three products from a joint process. The joint process has total costs of $511,000 per month. All three products, A, B & 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: Units Immediate Sales Price Later Sales Price Unit Cost of Further Processing A 4,500 $ 18 $ 20 $ 3.00 B 18,000 $ 20 $ 25 $ 4.00 C 10,500 $ 28 $ 32 $ 3.00
a-1. Should Product A be sold immediately or sold after processing further? Sell Now Sell Later
a-2. How much will the decision affect profit?
b-1. Should Product B be sold immediately or sold after processing further? Sell Now Sell Later
b-2. How much will the decision affect profit?
c-1. Should Product C be sold immediately or sold after processing further? Sell Now Sell Later
c-2. How much will the decision affect profit?
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